Define Statement of fi nancial condition

Q: Define stand by spares.

A: Current assets:   The assets of the company that cannot be converted into cash within a period of…

Q: Define LIFO conformity rule.

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Define carried interest

A: Carried interest: It could be a portion of any profit that private equity and hedge reserves common…

Q: Explain the characteristics

A:

Q: Define Assigning.

A: Assigning is a process of assignment. Assignment means a transfer of a right to receive a…

Q: Define Service period

A: Introduction: Usually, service is nothing but something that is supposed to support other who offer…

Q: Define the term PW criterion?

A: Present worth is a systematic identicalness technique where cash flows of a task are limited at…

Q: Define ERP.

A:

Q: Define NRV method.

A: Definition:   Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare…

Q: Define covenant

A: Answer: Covenant is a way to regulate the usage of property. This is an agreement made in the…

Q: d Standards of treatmen forcip

A: Direct investor refers to the investment which is designed for acquiring the controlling interest…

Q: Define rights offering

A: A rights offering is an offer made by a Company to issue additional stock to the existing…

Q: Define warrant

A: A warrant is a security that entitles a holder to buy the stock at a fixed price on a future date.…

Q: What general Occurrence and siz

A: Internal Control:   Internal control refers to the policies, and plans of the business organization…

Q: Define going-concern assumption

A: Definition: Accounting: Accounting is a system, or a process of collecting and organizing economic…

Q: acti

A: On September 1 LGS gives loan to Eden co of 11000 at an interest rate of 7 percent per annum.…

Q: Describe the basic assumptions of underlie GAAP.

A: Generally Accepted Accounting Principles (GAAP): It refers to accounting principles, standards and…

Q: Distinguish between association and cardinality.

A: Definition: Database management: Database management refers to the management of databases held…

Q: What is the LIFO conformity rule?

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Define characteristic line

A: Characteristic line is a graphical representation of alpha (α) where alpha is the difference between…

Q: Discus the elements of GAAS, how does it relate to GAAP?

A: GAAS(Generally Accepted Auditing Standards) :- provides standards by which the prepared financial…

Q: following i ds to be ga anization, e

A: Explanation : Preliminary analysis can be understood as the research on a subject that lets you…

Q: Define SML equation

A: Introduction: Security market line is the diagrammatic depiction of capital asset pricing model to…

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 Will.

A: A will is a legal document in which a person specifies how his property is going to be distributed…

Q: Define claim

A: Corporation - An organization that has been registered as a corporation under a corporation act has…

Q: Describe about the Going concern assumption with example.

A: Accounting:   Accounting is the process of recording the financial transaction of the organization…

Q: Define T-bill

A: A Treasury bills which are also known as T-Bills are mainly issue by Government of country. These…

Q: Determine the IRR

A: IRR is the discount rate where NPV of the cashflows calculated using IRR will be Zeera, which means…

Q: Define spread, underwriting

A: Difference between two prices or rates can be called as spread. But spread has different meanings…

Q: What is the decision rule for ARR?

A: Accounting rate of return refers to rate of profit earned on an investment. The ARR is computed by…

Q: Define Explicit Interest.

A: Explicit interest is the amount of interest paid by loan or in other words actual interest paid on…

Q: What does RI measure?

A: Residual Income: Residual income is the income earn over the minimum rate return of the company. In…

Q: Define vesting

A: The process by which a secured the right of present or future deployment is given to the holder…

Q: Recommend wl decisions.

A: Profitability index is a calculation that divides the current value of expected anticipated cash…

Q: Identify the i what can be e d

A: Internal Control:   Internal control refers to the policies, and plans of the business organization…

Q: Define Prepayments.

A: Step 1 The outflow of money to reduce the liabilities occurred in the current accounting period…

Q: Define contra account

A: Financial Accounting: Financial Accounting can be defined as an activity of recording financial…

Q: Describe EVA.

A: EVA (Economic Value Added):

Q: Define principal

A: Principal can refer to an amount of money you invest, the face amount of a bond, or the balance you…

Q: Distinguish between exposure and risk.

A:

Q: Define Materiality.

A: In accounting, materiality refers to the relative size of an amount. Relatively large amounts are…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.