Distinguish between par value and issue price.

Q: what is the effect of purchase supples on accout on current ratio?

A: Current ratio is the one that shows the current assets as numerator and current liabilities…

Q: Explain the law of one price in the perspective of the following: a) Purchasing power parity b)…

A: Law of One Price: It is stated in the law of one price that, in the absence of friction between…

Q: Differentiate between price risk and reinvestment risk.

A: Price risk is the risk of decline of the price of the investment or an asset after the underlying…

Q: Define the term price-takers.

A: Price takers is the term used for individual or a company which cannot influence the price of a…

Q: Describe and apply the lower-of-cost-or-net realizable value rule.

A:

Q: Under what conditions is a market-based transfer price most likely to be used?

A: Transfer Pricing: It is termed as the cost which is charged by the one department of the company…

Q: What is purchasing power parity?

A: Purchasing power parity (PPP): It is one well known macroeconomic investigation metric for…

Q: What is a transfer price? What are the three main approaches to setting transfer prices?

A: Transfer pricing:   Transfer pricing refers to the setting of prices for goods and services that are…

Q: What is Dollar-Value LIFO Retail Method ?

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

Q: What are the calculation formulas for transfer pricing?

A: There are many methods for determining the transfer price. Most businesses actually set the transfer…

Q: What is the difference between margin and markup?

A: Margin and Markup are two terms used for calculation of selling price of the product. Margin is also…

Q: What is market/book (M/B) ratio?

A: Introduction: Market value is nothing but the value derived when the stock price is multiplied by…

Q: What is a price standard?

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: e discount rates of plement method.

A: Introduction: Net price factor is a method of business promotion that is used by companies in order…

Q: Explain how the lower of cost and net realizable value rule is applied to purchase commitments.

A: Purchase Commitments: It refers to the commitments or contract made by a company with its suppliers…

Q: Understand and apply the lower-of-cost-or-net realizable value rule.

A:

Q: Define Valuation allowance

A: Valuation allowances are reserves created, which can set off deferred tax assets. If it is probable…

Q: Discuss the assumptions, approach, estimation, benefits, limitations, and criticisms of Arbitrage…

A: Arbitrage Pricing Theory is a multi-factor pricing model. Arbitrage Pricing Theory can be used to…

Q: Distinguish between market-skimming pricing and market-penetration pricing.

A: Product pricing strategies: There are two product pricing strategies of a company. They are,…

Q: Define dealer market

A: Answer: Usually, secondary market is a place in which investor will buy and sell securities between…

Q: How to Allocate the Transaction Price to Each Performance Obligation?

A: In revenue recognition , following steps are done- first of all we determine whether there is a…

Q: Compare standard quantity discounts to cumulative quantity discounts.

A: Cumulative Quantities Discount (CQD) is a system intended to recompense consumers after a definite…

Q: FIFO cost of goods sold?

A: Goods available for sale Cost of goods sold + Ending inventory As per LIFO method,   Cost of…

Q: Describe the discounting process?

A: discounting is the process of determining the future value into present value, In discounting time…

Q: Define alternative trading system (ATS)

A: An alternative trading system (ATS) is not an exchange-regulated, yet a position that suits its…

Q: Define Purchase return.

A: Financial accounting is the process of recording, summarizing, and reporting all the transactions in…

Q: What is meant by purchasing power parity?

A: Purchasing power parity It is a measuring of the prices in various other countries that utilizes the…

Q: Explain purchasing power parity

A: The formula to compute purchasing power parity:

Q: Explain Pass-Through Rates, Yields, and Servicing Fee?

A: Pass-through rateA rate of interest being paid to the investors on the securitized asset after…

Q: What is a transaction price?

A: Transaction price: It is the price of a service or a good which is expressed relative to the similar…

Q: Describe the advantages of the dollar-value LIFO method.

A: Definition:   Dollar value LIFO method: In this method, the valuation of inventory is calculated on…

Q: Define target payout ratio

A: SOLUTION:- A target payout ratio is a degree of the proportion of a company's profits it would want…

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: Explain how cost-of-carry is a factor in forward curve prices.

A: Cost of carry is the costs of holding the certain position in the market or in other words it is the…

Q: Define Mark to market

A: Introduction: Mark-to-market denotes to the realistic worth of an account that can fluctuate over a…

Q: Explain how to determine the transaction price.

A: Determination of transaction price is one of the step of revenue recognition process. The…

Q: Define bid quote (or bid price)

A: The recent price of stock or security at which stock or security is purchased and sold in the stock…

Q: What Is Fixed-Price Contract with Redetermination?

A: A fixed-price contract with prospective price redetermination provides for-       (a) A firm fixed…

Q: What is the quantity decision? The pricing decision?

A:

Q: Define Arbitrage Pricing Theory (APT)

A: Arbitrage is the method of making profit from the temporary change in the cost of shares by buying…

Q: Explain quantity discount

A: Introduction: A quantity discount is an inducement obtainable to a purchaser that fallouts in a…

Q: Briefly explain Purchasing Power Parity?

A: Purchasing Power Parity (PPP) is a theory of exchange rate determination. Purchasing power parity is…

Q: How is the price of an item established in a target pricing contract?

A: Target pricing is the approach which is innovative and used at the initial stage of the new…

Q: Define marking-to-market process.

A: Marking to market process is a vital process in the financial investment industry which has been…