Define Monetary/non-monetary method

Q: What is Balanace of Payment

A: Balance of Payment is a statement of monetary transactions made and records  between residents of a…

Q: Which of the following elements represents an economic resource? B . Liability.

A: The variables being used to manufacture products or provide services are economic assets. That is to…

Q: What is the quantitative disclosure of lessee?

A: Lease Agreement:   It is a contract between the owner of the asset (lessor) and the person who uses…

Q: Define Economic entity assumption.

A: Economic entity assumption is an accounting principle that separates the  transactions carried out…

Q: Define currency manipulator

A: Answer: Currency manipulator means a mark or a label given by US government departments, including…

Q: Discuss whether money has a time value or not. Support the argument with justification.

A: The time value of money refers to observation that it is better to receive money sooner than later.

Q: Describe the revenue recognition principle.

A: Definition:   Accrued revenue: Accrued revenue refers to the revenues that are generated from the…

Q: What is tmes-Interest earned?

A: Times-interest earned: This ratio quantifies the number of times the earnings before interest and…

Q: Define the term nonmonetary assets.

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: Describe about concept of the GOODS ON CONSIGNMENT?

A: Inventory:   Inventory refers to the raw materials, work-in process, and the finished goods…

Q: Summarize the basic procedure of Net-Present-Worth Criterion?

A: Step 1: Initially ascertain the initial investment of the initial outlay amount (CF0). The initial…

Q: Accrual basis m

A: Accrual basis is a method of accounting under which income is recognized when earned and expense is…

Q: Question. What are Operating and non-operating expence?

A: Expenses refer to the outflow of money for the payment of any product or service used in the course…

Q: Difference of Perpetual and Peiodic

A: Perpetual:-It is the inventory management system that keeps the record of the inventory in…

Q: al Currency, Functional Currency and Pre

A: Local currencies are currencies that circulate mostly locally and at a community level. They work as…

Q: How to Determine the Transaction Price?

A: Definition:   Transaction price: Transaction price refers to the price that a corporation receives…

Q: Explain the term Interest?

A: Interest is a compensation that one has to pay for using another entity's or person's funds. The…

Q: Define the term revenue recognition.

A: Accounting principle: These are the guidelines which are to be applied while preparing the…

Q: Define stable-monetary-unit assumption

A: Stable-monetary unit assumption is used by the US accountants. It specifically is important while…

Q: Define Interest cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Define a financial asset

A: A contractual financial instrument is classified into financial assets and liabilities. They are an…

Q: Instruments of money market .Explain it

A: Money Market are short-term instruments used for financing. These instruments aim to increase the…

Q: What is liquid asset?

A: A liquid asset can be described as the asset which can be sold into the market easily and can be…

Q: Distinguish between primary markets and secondary markets

A: Primary-market-The primary market is the place where the new bonds, stocks, etc are sold to acquire…

Q: Define compensating balance (CB)

A: Compensating balance is a minimum amount a borrower has to maintain with the lender. This is very…

Q: what is pooling of Interest Method?

A: The accounting method that governed how the balance sheets of two companies that were merged would…

Q: Define interest.

A: Interest is the amount charged by the lender for the money lend for specific period.

Q: Give differences between Revaluation account and Realisation account.

A: Revaluation account: The revaluation account is a nominal account opened to assess the values of the…

Q: Explain assumptions related to monetary unit?

A: As per the money measurement assumptions, only quantifiable transactions are recorded in the books…

Q: Define monetary unit.

A: Step 1 An economic unit that acts as a medium of exchange for transactional purposes is referred to…

Q: When it comes to calculating interest, what procedures are used?

A: The Answer:

Q: Money measurement concept

A: Money Measurement: According to the money measurement principle, a firm should only record an…

Q: Illustrate the methods of calculating Interest?

A: Traditionally, there are two methods of calculating interest : 1. Simple interest rate method 2.…

Q: Define a compensating balance

A: Definition: Compensating balance: A compensating balance is a minimum amount of cash that must be…

Q: DEFINE Balance Principle

A: The principal balance, in regard to a mortgage or other debt instrument, is the amount due and owing…

Q: Define the term Monetary liabilities.

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Assignment: Transmission channels of monetary policy operations

A: Answer: Buying government securities by Central banks lead to injection of external money into the…

Q: Explain the difference between monetary and nonmonetary assets and liabilities.

A:

Q: The functional currency is ?

A: Functional currency:

Q: What is accruals?

A: The answer is provided as follows:

Q: Define the term Non-comparable Compounding and Payment periods?

A: The question is based on the concept of interest rate calculation, which depend on the compounding…

Q: Explain the meaning of a "trade balance"

A: Answer: Trade Balance is basically the difference between the country's imports and exports. It is…

Q: Define Functional currency

A: currency : Currency is the medium of exchange of goods and services.

Functions of Financial Institutions

Financial institutions are businesses that are formed to deal with financial and monetary transactions. These organizations primarily accept deposits, advance loans, make investments, and provide foreign exchange services. Financial institutions include, but are not limited to, banks, insurance companies, trust companies, brokerage firms, and investment bankers. Because financial institutions play such an important role in the economy in terms of monetary transactions, regulating their activities has become a requirement for governmental authorities. As a result, the government creates a multitude of laws and regulations to oversee the activities of financial institutions.