An investment made in a fixed asset is similar to an investment made by a bank when it lends money. True or false?

Q: 1. This is a financial asset that is usually in the form of a negotiable instrument that holds…

A: The assets which can be converted to cash easily are known as liquid assets.

Q: Borrowing cash from 'the bank is an example of which type of transaction? Multiple Choice Asset…

A: Borrowing cash from the bank will affect the cash and liabilities. The cash balance has been…

Q: _____ is the opposite of a sinking fund. A. Accrual B. Compounding     C. Amortization D.…

A: Sinking fund is setting aside some money for future possible expenses.

Q: is A written promise to pay the supplies an asset capital so on? is Fax Machine an asset capital so…

A: The answer is stated below:             Note: Answering the first three subparts as there are…

Q: (1) How does getting a secured loan using accounts receivable as collateral differ from factoring?…

A: Hi student Since there are multiple questions, we will answer only first question. Sales means…

Q: ) Explain liquid asset management as it relates to a financial institu

A: As per company policy, it s only possible to solve the first part.

Q: Would a sale of equipment for cash be considered a financing activity or an investing activity? Why?

A: Definition:   Investing cash flow: The amount of cash disbursed or received in investing activity in…

Q: Identify the waysin which banks canmanage their assetsand liabilities to maximize profit

A:

Q: a. Securitization b. liquidation c. notarization  d.   intermediation) is an example of bank…

A: Option a is the correct answer

Q: Quick assets include cash,  temporary investments,  inventory,  and receivables.   True or false?

A: Quick assets: Quick assets refer to those assets that can be immediately and easily converted into…

Q: Which of the following would not be considered a form of capital? A. Cash B. Credit Card C. Money…

A: Introduction: Capital: Owners contribution in business called as Capital.

Q: What's the connection between financial intermediaries and securitization? When securitization moves…

A: This question explains about the connection between financial intermediaries and securitization

Q: Which of the following is not a function of bank management? Investment management Project…

A: Management becomes an integral part of every aspect of the business irrespective of the type of the…

Q: What are some types  of current assets that are pledged as security for short-term loans?

A: A pledged asset is collateral pledged by a borrower to a lender (usually in return for a loan). The…

Q: How do firms finance investments in current assets?

A: A current asset is the assets that only include those assets that can be easily converted to money…

Q: Why would lenders, in general, tend to set loan maturities (not amortization, but when the loan…

A: Loan Maturity: The time period for which a loan is extended is known as the loan period.  The date…

Q: Given a financial institution that make money in three ways: interest income, interest income, and…

A: Banks and Financial institutions make most of their money from loaning and re-loaning money. Low…

Q: What are the advantages and disadvantages of financing assets through loans

A: Resource account is that the act of utilizing Associate in Nursing organization's financial record…

Q: Explain liquid asset management as it relates to a financial institution

A: A liquid asset is an asset which can be converted into cash and marketable securities easily.…

Q: Which of the following transactions is revenue expenditure? A Expenditure resulting in improvements…

A: We have the following heads Expenditure resulting in improvements to property Expenditure on heat…

Q: Collateral is a valuable asset that is pledged to ensure loan payments. If you fail to repay the…

A: In mortgage loans, collateral is an asset or security used to take loan.

Q: What makes current liabilities different from long term liabilities?

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: An investment property is considered to generate cash flows that are?

A: Investment property can be defined as the property consisting of land or building which is not…

Q: Which one of the following assets is not considered as cash equivalent? Guaranteed investment…

A: Cash equivalents are form of liquid and current assets which can be converted into cash into short…

Q: The financial system serves as the main venue to invest excess funds by savers. This is made through…

A: Answer: True

Q: When an asset is sold at a gain, why is the gain not reported as a cash inflow from operating…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: Why is it advantageous for a company to finance its receivables?

A: Accounts receivable is the amount due to a firm for the use of goods and services but not yet paid…

Q: Why might a business invest cash in temporary investments?

A:

Q: How do firms use current liabilities, including accounts payable, accruals, lines of credit,…

A: Current liabilities are those liabilities which have a maturity period of one year or less than one…

Q: a)What is the basic principle in determining the price of a financial asset? b)Why is it difficult…

A: Financial assets include cash, securities, shares, mutual funds, and bank deposits. Financial assets…

Q: True or false?  Interest received on loans made to borrowers is an example of an investing activity.

A: The investing activities of the cash flow statement record the amount incurred for purchasing the…

Q: the "investment in branch" is an asset account in the branch's individual financial statements  a.…

A: A branch is an underlying department or division of an organization. The scattered distribution of…

Q: Provide a brief explanation of why depreciation of capital assets is considered in determining…

A: Capital assets are those assets which are held by the business for longer period of time.…

Q: Examine the role of bank credit in financing of working capital. What are the types of bank credit?

A: In order to conduct the business activity successfully funds are required, these funds are invested…

Q: Which of the following is an example an investing activity? * O Obtaining a bank loan O Paying taxes…

A: The cash flow statement is the financial statement that is created after the statement of income and…

Q: The original amount of money in a loan transaction is known as what?

A: Introduction: A loan is nothing but an amount of money lent from one or more individuals or…

Q: "Describe what a line of credit involves, and explain the legal obligation of a bank to provide…

A: Line of credit is the understanding between the banks and its customers that defines the maximum…

Q: A financial institution's liquid asset management should be explained

A: Introduction These assets may be readily transformed into cash and other marketable assets. For…

Q: A primary strength of the net present value method for analyzing investments is that it accounts for…

A: Net present value method means where the cash inflow has been discounted at given rate of interest…

Q: How can we check the balance sheet to determine the extent to which borrowed funds have been used to…

A: Borrowed capital refers to money which is borrowed from others to make an investment in form of…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is