What is the opportunity cost of keeping cash in the bank

Assignment Help Accounting Basics

Reference no: EM133357659

Question: BB CO. estimates its total annual cash disbursements of PS,251,250 which are to be paid uniformly. BB has the opportunity to invest the money at 9% per annum. The company spends, on the average, P25 for every cash conversion to marketable securities and vice versa. What is the opportunity cost (pesos) of keeping cash in the bank account?

Reference no: EM133357659

Questions Cloud

What is the purpose of the waiver of service of summons : What is the purpose of the waiver of service of summons? What documents are needed for it? What documents ore needed for service of process in New Mexico?

How our course activities relate to your goals for the class : ACCT 410 University of Maryland how our course activities relate to your goals for the class. Do the topics of this course affect your professional career?

What did you the person confronting the dilemma decide to do : What did you the person confronting the dilemma decide to do? What moral justification did they give? Is that approach morally, correct?

What is bmcs net book value of capitalized software : What is BMC's net book value of capitalized software development costs at the end of fiscal years 2011 and 2010? What explains the difference, if any?

What is the opportunity cost of keeping cash in the bank : The company spends, on the average, P25 for every cash conversion to marketable securities and vice versa. What is the opportunity cost (pesos) of keeping cash

How is reasonable time determined pursuant to the ucc : In your opinion what would be considered a reasonable time for Warren to accept the goods? How is reasonable time determined pursuant to the UCC?

What is the function of the bill window : Explain the difference between the Chart of Accounts and the Account List in QuickBooks and What is the function of the Bill Window? What GL account is Bill

Discusses how current technology is used by law enforcement : Discusses how current technology is used by law enforcement in carrying out their duties and provide examples of new technology to include body cameras.

Discuss the evidence that you would gather : State the actions the auditor should take and recommend which audit opinion would be issued. Give complete reasons for all of your answers

User Account

All Pages