effective-interest method

Examples of effective-interest method in the following topics:

• Organization of Interest Groups

  • Interest groups can come in varied forms and organize under different methods.
  • A Special Interest Group (SIG) is a community with particular interest in advancing a specific area of knowledge, learning or technology.Members cooperate to affect or to produce solutions within their particular field, and may communicate, meet, and organize conferences.
  • Public policy, in general, is a dynamic interplay of decisions between the President, Congress and interest groups.
  • Organizations may also have Special Interest Groups which are normally focused on a mutual interest or shared characteristic of a subset of members of the organization.
  • Discuss the theories behind interest groups and their effects on government

• Preparation of the Statement of Cash Flows: Direct Method

  • For example, if the interest expense is ten dollars, and the unamortized discount decreases by three dollars, then the cash paid for interest is seven dollars.
  • In this method, each item on an income statement is converted directly to a cash basis, and each cash effect is directly reported.
  • subtract ending payables (tax, interest, salaries, accounts payable, et al. )
  • add ending payables (tax, interest, salaries, accounts payable, et al. )
  • The two methods to calculate cash flows are the direct method and the indirect method

• The Effect of Expansionary Monetary Policy

  • But if the agents believe that the central bank's actions are short-term, they will not alter their actions and the effect of the expansionary policy will be minimized.
  • The purchases not only increase the money supply, but also, through their effect on interest rates, promote investment.
  • As a result, the interest rate for loans decrease.
  • Low interest rates encourage investment .
  • Another method of enacting a expansionary monetary policy is by decreasing the reserve requirement.

• Valuing Notes Receivable

  • Companies have two methods available to them for measuring the net value of accounts receivable: the allowance method and the direct write-off method.
  • The credit instrument normally requires the debtor to pay interest and extends for time periods of 30 days or longer.
  • Companies have two methods available to them for measuring the net value of accounts receivable--the allowance method and the direct write-off method.
  • The first method is the allowance method, which establishes a contra-asset account, allowance for doubtful accounts, or bad debt provision, that has the effect of reducing the balance for accounts receivable.
  • The second method is the direct write off method.

• Calculating the Yield of a Single-Period Investment

  • You may get slightly different numbers using different methods, so it's important to make sure that you use the same method when you are comparing yields.
  • This section will address the yield calculation methods you are most likely to encounter, though there are many more.
  • To find the effective APR, the actual amount of interest you would accrue per year, we use the Effective Annual Rate, or EAR.
  • Interest usually compounds, so there is a difference between the nominal interest rate (e.g. monthly interest times 12) and the effective interest rate.
  • Differentiate between the different methods of calculating yield of a single period investment

• Comparing Interest Rates

  • Since interest compounds, the amount of interest actually accrued may be different than the nominal amount.
  • The last section went through one method for finding the amount of interest that actually accrues: the Effective Annual Rate (EAR).
  • It provides an annual interest rate that accounts for compounded interest during the year.
  • The nominal interest rate is approximately the sum of the real interest rate and inflation.
  • Discuss the differences between effective interest rates, real interest rates, and cost of capital

• Recognizing Notes Receivable

  • Accrued assets are assets, such as interest receivable or accounts receivable, that have not been recorded by the end of an accounting period.
  • For example, a sale on account would be recorded similarly to the following interest receivable journal entry:
  • The first method is the allowance method, which establishes a contra-asset account, allowance for doubtful accounts, or bad debt provision, that has the effect of reducing the balance for accounts receivable.
  • This second method is simpler than the allowance method in that it allows for one simple entry to reduce accounts receivable to its net realizable value.
  • Describe the difference between using the allowance method vs. the write off method when recording a note receivable

• Research Methods for Evaluating Treatment Efficacy

  • Researchers who assess therapy are interested in areas such as whether or not counseling is effective, under what conditions it is effective, and what outcomes are considered effective—such as symptom reduction, behavior change, or quality-of-life improvement.
  • When assessing the effectiveness of therapy, researchers often rely on mixed-method designs, which means using both quantitative and qualitative designs.
  • Qualitative data can provide subjective information that cannot be measured or effectively captured by quantitative methods.
  • A meta-analysis comprises statistical methods for contrasting and combining results from different treatment-focused studies in the hope of identifying patterns among study results, sources of disagreement among those results, or other interesting relationships that may come to light in the context of multiple studies.
  • Describe the research methods and criteria that are used to determine the effectiveness of therapy

• Amortized Cost Method

  • The bonds provide a 6% return, with interested paid semiannually.
  • In order to record the interim interest revenue and report the investment on the balance sheet, it is necessary to prepare an amortization schedule for the debt.
  • The first interest payment is $1,600, but since the company paid a premium, the effective interest earned is $1,302 (net the amortization of the premium).
  • Explain how a company would apply the amortized cost method to a debt held to maturity

• Psychology and the Scientific Method: From Theory to Conclusion

  • All scientific disciplines are united by their use of the scientific method.
  • In an experiment a researcher manipulates certain variables and measures their effect on other variables in a controlled environment.
  • Descriptive studies describe the nature of the relationship between the intended variables, without looking at cause or effect.
  • Many of the concepts that psychologists are interested in—such as aspects of the human mind, behavior, and emotions—are subjective and cannot be directly measured.
  • This diagram shows the steps of the scientific method, which are listed below.