c) What are the advantages of using duration as an asset-liability management tool as opposed to interest-sensitive gap analysis?

Q: What are the quantitative disclosures that must be done by lessee?

A:

Q: How is present value related to the concept of a liability?

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: Differentiate between the Passing of Risk and the Passing of Ownership.

A: when the goods are sold the risk remains with the seller until the property in the goods is…

Q: There are several asset pricing models used to determine an asset’s intrinsic value, the most…

A:

Q: Discuss the difference between an unrealized holding gain and a realized gain.

A: The gain is the excess of revenue earned over the expenses incurred.

Q: Which are the assumptions will be added as we discuss the various approaches to the valuation of the…

A: REIT stands for a real estate investment property. The investment is treated as investment in stocks…

Q: How does Leasing offer protection against the risk of declining asset values?

A: Leasing:    The term leasing defines that it is a process of renting a property to someone the…

Q: If the residual value of a leased asset is guaranteed by a third party:

A: A lease is an arrangement under which a lessor agrees to allow a lessee to control the use of…

Q: Explain Options to Report Liabilities at Fair Value.

A: Introduction FASB introduces Fair Value Options to report assets and liabilities in fair value,…

Q: a) Why would a DRC (Depreciated Replacement Cost) valuation not normally be acceptable for secured…

A: When the physical deterioration or any other obsolescence of the assets is deducted from the current…

Q: k that could happen during the fixed asset acquisition process and how such risks could impact the…

A: Designated members of management should be assigned responsibility for authorizing the purchase of…

Q: How contract is discharged by subsequent impossibility?

A: Discharge of agreement or contract implies the end of the authoritative connection between the…

Q: What are the quantitative disclosures that must be done by lessor?

A:

Q: Asset-Based approach in valuation

A: Assets are the future economic benefit of the company that is sacrificed in paying off the debt and…

Q: What does the asset turnover ratio measure, and how is it calculated?

A: Profitability ratios: In general, financial ratios are used to evaluate capabilities, profitability,…

Q: Which of the following does not require disclosure in the financial statements?   choices: There is…

A: Disclosure in Financial statement Disclosure in the financial statement which is described as…

Q: Can someone explain this amortization schedule's breakdown?

A: The capital is the backbone of the company, and the company will be willing to raise the capital for…

Q: Define spontaneous liabilities

A: Liabilities are the money owed by the company to outsiders. These liabilities can be classified as…

Q: What are the economic benefits of leasing vs ownership of assets?

A: MEANING:- Leasing of Assets - The leasing of assets refers when the owner gives the right to use…

Q: Why might disinflation prove favorable to financial assets?

A: Disinflation is the reduction or lowering of the pace of inflation. In other words in situation of…

Q: hat situational circumstances can the Asset-based valuation be

A: Valuation is the process of determining the fair market value of a company's assets or operations.…

Q: the assets' risk is the asset returns a

A: Step 1   Covariance is a statistical measure of how two assets move concerning each other. It…

Q: What is the difference between a current asset and a fixed asset?

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Calculate the duration and convexity of the both asset and liability sides

A: Excel Spreadsheet: Excel Workings:

Q: Which of the following liabilities would be considered nonrecourse?

A: "As the student have not been given the options to choose the nonrecourse liabilities, I will give…

Q: Why do deferred liabilities arise? Explain your answer with suitable example.

A: Why do deferred liabilities arise? Explain your answer with suitable example.

Q: (a) Define risk-free asset

A: An asset which generally having certain future returns and there is no chance of loss in return is…

Q: Is it possible to distinguish between long-term liability and short-term responsibility?

A: The Answer:

Q: How do U.S. GAAP and IFRS differ in their treatment of a range of equally likely losses?

A: Loss contingency: Loss contingency is a contingency where the existing situations or circumstances…

Q: Explain how does a liability’s fair value change?

A: Fair value is the value of liability which has to be reported in the books of the company’s…

Q: Why would an investor apply the Fama-MacBeth Method in asset pricing assumptions?

A: The Fama–MacBeth method in asset pricing is used to estimate different parameters for asset pricing…

Q: What are the definition criteria of an asset and a liability

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: Define the following terms: common pool problem, holdoutproblem, automatic stay, cramdown,…

A: Hey, since there are multiple subpart questions posted, we will answer the first three questions. If…

Q: Select the investment accounting approach with the ­correct valuation approach:     Not…

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: Suppose the analysis of a loss contingency indicates that an obligation is not probable. What…

A: Contingent Liability  Contingent liability is one form of liability that arises based on a…

Q: Explore the implications of short-selling and the inclusion of a risk-free asse

A: Short selling may be a trading or investment strategy that bets on the worth of a stock or other…

Q: Explain Contingent Liabilities.

A: Contingent liabilities are the liabilities of the company but they can not be classified as current…