Explain restrictive covenant

Q: Provide examples of how finacial statments are useful and or how they are used?

A: Financial statements refer to such statements which report the profitability and the financial…

Q: Describe what is the assumed liability?

A: An assumed liability is an obligation under the terms of the agreement assumed by a party. Insurance…

Q: Define forward contract.

A: It is a form of derivative contract which is used as an agreement

Q: Explain how materiality affectsaudit reporting decisions.

A: American Institute of Certified Public Accountants (AICPA): AICPA is the organization which supports…

Q: Define Puttable bond.

A: Puttable bond: A puttable bond is a kind of bond that offers the right to the bond holder, but not…

Q: Explain preemptive right

A: Answer: A pre-emptive right is a benefit that can be granted to other owners in a company that gives…

Q: Define Effective interest method.

A: Effective interest method: It refers to the method of accounting that is usually used for the…

Q: Define the term contingent liability.

A:

Q: Explain Derivative security?

A: Derivatives security: A derivative security is considered as a financial instrument whose value is…

Q: Define covenant

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

Q: Define the term Contract Modifications.

A: Accounting: Accounting is an art of collecting, recording, summarizing and presenting the financial…

Q: Define rights offering

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

Q: ontr

A: Definition of a Contract: A contract is a legally enforceable agreement. It might be a promise to do…

Q: What is discretionary reporting?

A:

Q: Discuss the rules for related party loss limitations.

A: The IRS has define rule regarding the transactions with the related parties and the treatment of…

Q: Explain the term Voluntary Conveyance

A: Voluntary Conveyance: Voluntary conveyance is defined as an elective transmission of title from one…

Q: What are the categories of liability? Explain them.

A: Liabilities:   A liability is a sum of money owed by the company towards external entities like a…

Q: Define fair value hedges.

A:

Q: What is liability

A: Financial accounting includes recording, collecting, summarizing and interpreting the financial data…

Q: Define regulation D

A: The Accounting Standards are specific set of principles and procedures set by the authorized bodies…

Q: What are the rules of safe harbor?

A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Q: What are circumstance-imposed scope limitation and client-imposed scope limitation?

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

Q: Define underwritten arrangement

A: Underwritten arrangement is the type of arrangement between investment banker and company in which…

Q: iscuss exclusion clauses, explain it briefly and include example

A: Exclusion clauses Such clauses are found in a contract mentioned under terms and conditions…

Q: Define charter

A: Introduction: Charters are legalized documents that lawfully set up corporate companies. Only…

Q: What are the limitations on Control Activities?

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: State difference between sureties and security?

A: In development contracts, if a worker for hire neglects to play out the works, the business would…

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: Explain the meaning of withholding at source

A: In finance withholding at source pertains to the domain of taxation. This is found in many countries…

Q: Define collection policy

A: Introduction: A mutual responsibility between the operating departments, accounts receivables is to…

Q: What is indentures?

A: An indenture is a legal contract that states the advantages and commitments of two or more parties…

Q: Explain the Nonrecourse clause?

A: A sum of money that an individual or company owes is called liability. It is an obligation between…

Q: Define abandonment option

A: Abandonment option which is also known as the termination option gives the obligation to firm or…

Q: = preventive controls™

A: 1st option is wrong because it can not be ensured that preventive controls are 100% effective. 2nd…

Q: Discuss the contract according to its enforceability?

A: In basic terms, a contract implies when two gatherings put into composing an understanding that…

Q: How might exclusion clauses be found to be unenforceable?

A: Exclusion clause is defined as the term of contract that looks for restricting or excluding the…

Q: Define underwriting syndicate

A: An underwriting syndicate is headed by a bank known as the lead underwriter. It is a group of banks…

Q: Define detachable warrant

A: A detachable warrant may be a by-product that's connected to a security which supplies the holder…

Q: Explain how to account for the impairment of a held-tomaturitydebt security.

A: Debt securities: Debt security is money borrowed at a specific rate of interest which must be repaid…

Characteristics of Bonds