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

Q: What are the characteristics of good or useful information?

A:

Q: Define the term Approval of payment requests?

A: The payment is an amount of money paid by the customer to the seller in exchange of goods and…

Q: Explain the call-put parity relation and how it is justified?

A: call-put parity relation 1. It shows the prices of calls and puts , consistency of underlying…

Q: What is the basis for distinguishing between operating and nonoperating items?

A:

Q: What form is required?Explain why this is the correct form?

A: Taxation states the financial charge or obligation which is imposed through the government or…

Q: What is meant by the term antidilution? Give an example.

A: An increase in the earnings per share refers to anti-dilution. This results on account of the…

Q: Define the term materiality concept.

A: Accounting concept:   They are the basic rules and assumptions that forms the base for recording the…

Q: What approaches may be employed in applying the LCNRVprocedure? Which approach is normally used and…

A: Lower-of-cost-or-net realizable value: The lower-of-cost-or-net realizable value (LCNRV) is a method…

Q: Define the term internal users.

A: Internal users are people within a business organization who use financial information. Examples of…

Q: what is disinvestment ?

A: Disinvestment:  Disinvestment means selling off the assets such as manufacturing plant, a division,…

Q: Explain types of Properties?

A: Tangible Property: This type of properties alludes to a property that can for the most part be…

Q: What are the benefits of netting?

A: Answer Defination:- Netting is a process by which an exposure or obligation is reduced by combining…

Q: What are retakaful and reinsurance and how takaful products can be used for hedging purposes?

A: Retakaful and reinsurance : In simple words, The Muslim reinsurance sector is referred to as…

Q: Explain Disposition Decisions?

A: Patients' having the option to see through to their last disposition can be an overwhelming capacity…

Q: What is discretionary reporting?

A:

Q: Use of CAATs?

A: Computer Assisted Audit Techniques or CAATs can be characterized as an auditing strategy that…

Q: What are the examples of gain contingency?

A: A gain contingency is a uncertain future event which results in economic inflow to a entity, it is…

Q: Explain the term Voluntary Conveyance

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

Q: Explain recourse

A: A recourse is a legal right to demand a compensation  or repayment. it is an legal agreement that…

Q: What are ESOPs? What are some of their advantages anddisadvantages?

A: ESOP: Employee stock ownership plan is retirement plans for employees of the company wherein the…

Q: What is GAAP and why it is needed?

A: GAAP - Generally Accepted Accounting Principles

Q: why to conduct feasivility study

A: Forecasting by financial analysts assists management in determining appropriate ways to attain the…

Q: Define Hedging.

A: Hedging is the transfer of risk from a risky financial instrument to another instrument by buying or…

Q: How do fixed asset systems differ from purchases systems?

A: Definition: Purchase system: The identification and procurement of the inventory needs for the…

Q: Define the term Net method.

A: As per the net method, the company records the amount of purchase by deducting any potential…

Q: Explain safe harbor rules?

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

Q: Distinguish between Service Projects and Revenue Projects?

A: Service Projects: Service projects are those projects which are carried out for the welfare of…

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: What is an LBO?

A: Leveraged buyout (LBO): It is another firm's takeover, employing a huge sum of borrowed capital to…

Q: What is consignment

A: Consignment is a form of arrangement between two parties in which one party sends goods to another…

Q: What is meant by the term decentralization?

A: Decision-making process:Decision making can be defined as the process of making choices through the…

Q: Define the term external users.

A: An external user is a person outside of an organization who does not directly run its operations and…

Q: In general, relevant information possesses which qualities?

A: Relevance is an important characteristic of accounting information. It refers to how helpful the…

Q: Define collection policy

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

Q: What are finanicial transactions?

A: Transaction process system: It is a transaction process system can be defined as a system which is…

Q: Define the term Force account?

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

Q: Explain consignment arrangement with example.

A: Goods in transit: Goods in transit can be described as the inventories which are shipped by the…

Q: Define impairment? Give an example?

A: Impairment: The intangible assets which have indefinite lives are not amortized but are tested…

Q: Define the term lnvesting activities? Explain with an example?

A: Investing activities are the activities in a business which involves investment done during a…

Q: Explain Interests, Encumbrances, and Easements?

A: Interest refers to the additional amount paid by a borrower or received by an investor apart from…

Q: What are support events?

A:

Q: What are some advantages of asset allocation?

A: The advantages of applying asset allocation:   Diversification:  Long-term investing:…

Q: What are the strengths and weaknesses of infrastructure as an asset class?

A: Infrastructure as an asset is an investment in services, installations, and facilities. There are…

Q: Define Securitization.

A: