Tippi Corp

question 179

Multiple Choice

Tippi Corp.invested cash in a 9-month certificate of deposit (CD) on October 1,2014.If Tippi has an accounting period which ends on December 31,2014,when would it most likely recognize interest revenue from the CD?

• A)On December 31,2014 only
• B)On July 1,2013 only
• C)Both Dec.31,2014 and July 1,2013
• D)On October 1,2014

---

Definitions:

Hard Rationing

A situation where companies cannot obtain funds for investment, even if they are willing to pay higher interest rates, due to external factors.

Net Present Value

A calculation that determines the current value of a series of future cash flows, discounted back to their present value at a specific discount rate.

Funding Requests

Applications or appeals for financial support, typically made by businesses or organizations to potential investors or grant bodies.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales volume, indicating how earnings are affected by revenue changes.