Define GAP Analysis

Q: Differentiate between ROE and ROIC.

A: Return on equity (ROE) is the returns produced by a company on its equity capital. It is expressed…

Q: Explain the differences between a PPO and an HMO.

A: The question is based on the concept of different types of health insurance policy and their…

Q: Vertical Analysis

A: Trend analysis is an analysis done by the companies to understand their current performance with…

Q: Explain breakeven analysis.

A:

Q: Briefly explain two measures that can be used in narrowing down the expectation gap

A: Ans. The audit expectation gap is defined as the difference between what the public expects from an…

Q: Explain Anti-dilutive Security

A: Explanation to Securities Securities are referred to as the tradeable financial instruments which…

Q: Define revaluation

A: Revaluation holds many meanings in different fields. In financial terms, it is the adjustment and…

Q: Define Vertical analysis.

A: Financial statement analysis   Financial statement analysis are analyzed to understand the…

Q: List the disadvantages of decentralization.

A: Decentralization refers to a company's top management delegating authority to subunits of the…

Q: Explain the drawbacks of IRR over MIRR with example?

A: Capital budgeting is part of investment decisions. Business firms consider capital budgeting in…

Q: Define Reconciliation method

A: Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from…

Q: Define red-line method

A: Answer: A red-line strategy is nothing but a tactic used for controlling the stock, as it is the…

Q: Briefly explain two measures which can be used in narrowing down the expectation gap

A: Expectation gap is the term which is defined as the gap among the users of assurance reports…

Q: Explain rebalance

A: Rebalancing is the strategy for realigning portfolio weightings. Rebalancing incorporates buying or…

Q: Define crossover rate

A: Crossover over rate helps the company to determine which investment proposal will be beneficial in…

Q: Define anchoring bias

A: Introduction: There are different forms of biases that are exposed to the particular decision makers…

Q: Problem with explanation.

A: Solution: Number of check-out clerks employed = 80 cost of check-out clerks = $800 per week…

Q: Define continuity assumption

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

Q: Describe the revaluation model.

A: Introduction: The revaluation model stretches a business the option of carrying a fixed asset at its…

Q: Define basis point

A: Answer: A base value is an approximate number, also used as an initial index value. All potential…

Q: Describe the benefits of decentralization.

A:

Q: Explain the differences between IFRS and GAAP

A: GAAP is a common set of accepted accounting principles, standards, and procedures that companies and…

Q: List several potential problems with ratio analysis.

A: Ratio analysis is a correlation of details in an organization's financial reports. It is utilized to…

Q: Explain the limitations of CAPM.

A: A mathematical model that describes the link between a security's expected return and risk is…

Q: Describe techniques of comparative analysis.

A: Comparative analysis of a financial statement helps the potential investors and stakeholders to…

Q: Explain retention ratio

A: Retention Ratio represents the percentage of profits retained by a Company. The Retention ratio…

Q: Define uncertainity ?

A: "Uncertainty" in accounting refers to the difficulty of predicting outcomes because of limited or…

Q: Define the term effective rate.

A: The effective rate is the real return on a savings account or any interest-paying investment when…

Q: Define risk

A: Risk can be defined as whenever there are chances that the investments’ actual outcomes are…

Q: Why runaway gap (technical analysis) occur? Explain.

A: Introduction : The mentality underlying a runaway gap would be that dealers who missed the initial…

Q: Define opportunity cost

A: Opportunity costs represent the benefits an individual, investor or business misses out onwhen…

Q: Define underinvestment problem

A: Underinvestment refers to the situation where company or firm has insufficient investment or can…

Q: Define solvency ratios.

A: Solvency: Solvency is the capability of a company to pay the long-term liabilities which are due.…

Q: Explain real options

A: Introduction: Options are one of the derivative contracts which involve two parties, contract buyer…

Q: Difference Between Traceability and Controllability? Explain briefly in points.

A: Traceability and controllability are two concepts used in cost accounting. These are the forms of…

Q: Explain differential analysis

A: Differential Analysis involves understanding the purpose of different costs that may arise from…

Q: How is breakeven analysis different from CVP analysis?

A: Breakeven analysis: It helps to analyze the break-even level of company that is, the level of…

Q: Define Diluted EPS

A: Diluted EPS is a financial ratio to check the quality of the Earnings per Share after taking into…

Q: Define separable cost.

A:

Q: Explain the term single rate method.

A:

Q: Types of gap and give example with interpretation

A: The term 'gap' assumes different meanings in finance.  In banking, it generally denotes the…

Q: Maslow hierarchy of need theory

A: Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier model of…

Liquidity Risk Exposure

Answer: c