You receive payments over 4 years of $2000. To begin you had to make an initial investment of $1000. The relevant interest rate is 6%. What is the net present value of this account?
The net present value is $5,930.21
5(-3x-2) - (x - 3) = -4(4x + 5) +13
The equation ends up becoming 0 = 0
What is the difference, when accounting for revenue, between cash basis accounting and accrual basis accounting?
You recognize revenue when you receive cash in cash accounting, and recognize revenue when you earn it in accrual accounting.