The definition of provision in uses the term ‘probable’. How would you interpret ‘probable’? What percentage would you ascribe to the term? Is there any research on how this term is interpreted?

Q: Which of the following statements regarding Forfaiting is/are accurate?

A: Forfaiting is a process that consists of a company engaged in exporting the  goods and services such…

Q: For information to be relevant, it has to possess: Only predictive value Both predictive and…

A: Relevance is a Fundamental characteristic of useful Financial information. Relevant information can…

Q: Which are the assumptions will be added as we discuss the various approaches to the valuation of the…

A: REIT stands for a real estate investment property. The investment is treated as investment in stocks…

Q: Explain in detail, using examples where possible, the difference between hedging, speculation

A: In the world of finance and investments hedging and speculation are important concepts. Many…

Q: What exactly does the term "FMS option" imply and what is its significance?

A: A flexible manufacturing system (FMS) can boost productivity and minimize production costs. Flexible…

Q: What is risk? What is the difference between systematic and unsystematic risk?

A: Risk: Risk can be defined as upcoming uncertainty about variation from anticipated earnings or…

Q: What are some recent trends regarding absolute versus relativepriority doctrines?

A: The priority rules are methods of making payments to the creditors and shareholders in case of…

Q: What other kinds of comparisons might an analyst make?

A: Ratio analysis, horizontal analysis and vertical analysis are the analytical tools used by the…

Q: Which one is not an advantage of the sensitivity analysis? A. To make contingency plans B. To adjust…

A: Some important factors are changeable and unpredictable in future like interest rates, cashflows,…

Q: What are quantitative measurements versus non-quantitative measurements with respect to risk?

A: Risk is used to describe the probability or uncertainty related to a future event with a favorable…

Q: A critical assumption of the exploratory factor analysis (EFA) is that it is only appropriate for…

A: Definition: Exploratory Factor Analysis (EFA): It is a statistical approach to determine the…

Q: How to compare other measures of risk with VaR(value at risk

A: VAR or Value at Risk is quantitative risk measurement in portfolio or firm this measures and also…

Q: For information to be relevant, it has to possess: O A. Only predictive value O B. Only confirmative…

A: Relevant information is that information which is useful for the stakeholders and users can make…

Q: whether the statement is true or false.

A: Asset-based financing is the finance availed by a company in lieu of its assets. In such cases, the…

Q: Briefly explain the assumptions of CAPM

A: Capital Asset Pricing Model (CAPM) is a measure used for determining the price of risky assets.…

Q: A principle that is concerned with information that should be significant enough to affect…

A: Accounting Principles: These are the methods, guidelines, and rules that shall be followed by the…

Q: The use of the word “prior” is a key indicator that information is nonrelevant to a current…

A: The use of the word "prior" is not a key indicator to know that information is non-relevant to a…

Q: Define certainty equivalent method

A: Certainty equivalent method: Certainty equivalent method is a risk analysis technique used in…

Q: What procedures should be performed to determine the adequacy of the allowance for doubtfulaccounts?

A: Allowance for Doubtful Accounts: This is a contra asset account to the Accounts Receivables account…

Q: It’s not easy sometimes to distinguish between a change in principle and a change in estimate. In…

A: Definition:   Accounting changes: Accounting changes are the alterations made to the accounting…

Q: Which of the following is the least acceptable measurement for a provision?   a. average of a given…

A: Solution: The least acceptable measurement for a provision is "actual settlement amount known after…

Q: Conduct Breusch-Godfrey test the hypothesis stated?

A:

Q: explain why the author's assessment of the appropriateness of the going concern assumptions is so…

A: Going Concern Assumption- As per the going concern assumption business will continue its…

Q: what is return. Define risk and explain how it is assessed

A: Definition

Q: What is the difference between systematic risk and unsystematic risk? Give an example of each.

A: Risk: The possibility that the actual outcome in a situation will differ from the expected outcome…

Q: Would you say this chart  is a technical or a fundamental analysis? Give reasons for your  answer?

A: The question is based on the concept of analysis of stock performance. Fundamental and technical…

Q: what are the major assumptions in making this estimate for REV?

A: Analyst estimates the worth of the real estate for the clients because now the investors have also…

Q: as fortuitous event? J

A: The pandemic issue has caused in an increase in breach of contract processes worldwide,…

Q: How are total risk, nondiversifiable risk, and diversifiable risk related? Why is nondiversifiable…

A: Total risk is measured by the standard deviation of returns; it has two elements non-diversifiable…

Q: oncepts of “Relevance” and “Representational Faithfulness”

A: SOLUTION:- Relevance means the potential of information or facts to make a distinction in decision.…

Q: What is the VIX index? What is it used for? What are considered high values for the VIX and what do…

A: Volatility: - Volatility is a measure of movement or price variation in assets on daily, weekly,…

Q: What is an evidence which can support a conclusion for the time being but it may be proven…

A: Circumstantial proof is evidence that depends on associate illation to attach it to a conclusion of…

Q: Which of the following is not a constraint on the fi nancial statements according to the Conceptual…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: the future. Under these conditions, which of the following statements is most correct?

A: Answer :- option 4 The value of the stock can be found using DCF procedures by finding the present…

Q: Understated, Overstated or No Effect?

A:

Q: Which of the following conditions defines a contingency? O The uncertainty related to a contingency…

A: Contingency: A contingency is the possibility of a bad future event, such as an economic downturn,…

Q: Only sets of non-nominal items that presumably belong to reflective latent factors are acceptable…

A: Definition: Analysis of Factors (EFA): An experiment's variables are analyzed using statistical…

Q: What is an unasserted claim?

A: An unasserted claim or assessment is one in which the affected party or potential claimant has not…

Q: An information that is relevant is one that has ___________ value. a. Historical b. Uncertain c.…

A: Predictive value means the information has such characteristics to predict future outcomes. Further,…

Q: Assuming that both can be calculated with reasonable accuracy, does book value or intrinsic value…

A: Intrinsic value is a more accrurate assessment as compared to book value assessment because,…

Q: tiveness to knowledge? Also mention empirical evidence.

A: Inventiveness : The ability to create something new or to innovate and imagine is called…

Q: describe presentation choices, including non-GAAP measures, that could be used to infl uence an…

A: There is very nothing new during this reading, simply a review of the previous material. heaps of…

Q: Examples of ambiguous words in reporting include: a. adequately b. regularly c. often d. All the…

A: Examples of ambiguous words in reporting include adequately,regularly.. Option D All the options…

Q: One of the characteristics of an insurable risk is that a risk needs to be determinable and…

A: An insurable risk class is a group of people or businesses with similar characteristics that are…

Q: Instructions a. Prepare an incremental analysis for the special order. b. Should Gruden accept the…

A: Incremental analysis of special order :- it helps companies decide whether or not to accept a…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.