Q: A conservatively financed firm would: A. use long-term financing for all fixed assets and short-…
A: Finance company is referred to as an organization, which used to make the loans to the businesses as…
Q: The ratio establishes the relationship between fixed assets and long-terms funds is [A] current…
A: Financial ratios are used to interpret the financial statements. Each financial ratio helps in…
Q: The place where funds are transferred from one section to the other of financial system Select one:…
A: Funds are referred to as money. Through a particular place these funds can be transferred from one…
Q: Cash flow analysis is based on the [A] capital [B] fixed assets [C] cash concept of funds [D]…
A: Asset: It refers to the resources owned by the business in both tangible and intangible forms.
Q: Explain how each of the following items is reported in a complete set of financial statements,…
A: Financial statements comprises of income statement, balance sheet and cash flow statement in which…
Q: Which of the following is not classified as an Investment Account Investment in Associates…
A: Investment in Associates - Long term Investment Investment in Subsidiary - Long term Investment…
Q: In a statement of cash flows, indicate which of the following does NOT correspond to financing…
A: Statement of cash flows consists of three sections: Cash flow from operating activities Cash flow…
Q: The traditional financial management approach was only limited to Select one: a. Working capital b.…
A: Financial management refers to the essential arranging, coordinating, coordinating, and controlling…
Q: Traditional approach to financial management is how the funds can be utilised efectively. Select…
A: False
Q: Traditional Approach of finance was limited to Select one: O a. Utilization of Funds
A: The traditional approach of finance deals only with the raising of funds to meet the financial…
Q: Which of the following is NOT a capital component when calculating the weighted average cost of…
A: WACC (discount rate) refers to the joint cost of company's capital from all the sources of the…
Q: Classify the type of financial formula for the information given. Lump-Sum Problems P A known…
A: The investors are estimating the return and maturity value before making investment in any security.…
Q: Which of the following types of transactions would be reported as a cash flow from investing…
A: issuance of bonds payable: financing activity issuance of capital stock: financing activity purchase…
Q: Statement of financial position information is useful for all of the following except to Group of…
A: Statement of financial position is the Balance Sheet. Balance Sheet represents the assets,…
Q: Which of the following statements is incorrect? Cash fund that is being held specifically for the…
A: Lets understand the basics. Cash or cash equivalent is an item which are either cash or either…
Q: Capital gearing ratio indicates the relationship between A. assets and capital B. loans and…
A: Capital gearing ratio: Capital gearing ratio refers to the tool to analyze the capital structure of…
Q: Current assets under IFRS are listed generally: a. by importance. b. in the reverse order of…
A: Current assets: The assets which could be converted into cash within one year like accounts…
Q: The capital budgeting is associated with Select one: a. None of the options b. Short term assets c.…
A: Capital budgeting is the tool used to analyze the long term investment. There are different…
Q: statements are true of long-term investments? They can be considered cash equivalents.
A: Investment: It refers to the process of using the currently held excess cash to earn profitable…
Q: Why are investments in marketable securities shown sepa-rately from cash equivalents in the balance…
A:
Q: All of the following are presented as part of non-current financial assets, except * O Long-term…
A: The Fixed assets and Investments that are long term in nature i.e. full value of the asset cannot be…
Q: Categorize the following as source or use of funds. Also classify them under operating, investing…
A: The funds flow statements shows the inflow and outflow of funds and cash flow statements helps in…
Q: Which of the following are purchased funds? A) Retail time deposits B) Repurchase agreements C)…
A: Purchase funds- It is a type of fund that allows the company to redeem its securities at a discount…
Q: How would the purchase of non-current (capital) assets appear on the statement of cash flows?…
A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…
Q: 9.When the Indirect Method is used to prepare the Statement of Cash Flows, the amortization of a…
A: Cash flow statement is a part of financial statements prepared by an organization to know the in…
Q: Short term investment decisions are also called as Select one: O a. Liquidity decision b. Finance…
A: Investment decisions can be both short term and long term
Q: The funds invested in current assets are termed as Select one: a. long term assets b. Short term…
A: The term assets refer to the resources that are owned by a company, and these assets provide future…
Q: Proprietary Funds account for financial resources segregated to pay principal or interest on…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Net present value and the payback period are examples of discounted cash flow methods used in…
A: Various methods used in capital investment decisions are Pay back period, Accounting Rate of…
Q: Identify which one of the following is not the importance of capital market? a. Effective…
A: Capital markets are very important for countries to grow business and mobilize money.
Q: The statement of cash flows reports the cash proceeds from issuing a bond as a cash flow from…
A: "Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Marketable securities or cash equivalents (Choose the INCORRECT statement) a) are acquired with the…
A: Marketable Securities or cash equivalents are the assets of the company which falls under current…
Q: True (t) or False (f) ______ Short-term, highly liquid investments may be included with cash on the…
A: Cash and cash equivalents include Cash Commercial paper Treasury bills Short-term, highly liquid…
Q: Which of the following items should not appear on the Cash Flow Statement
A: Cash Flow Statement: It is a financial statement that shows the summary of the cash entering and…
Q: Investing activities include transactions that affect issuance of common stock A Financing…
A: The statement of cash flow is one of the most important financial statement to be prepared at the…
Q: Fixed assets were purchase i. Depreciation on fixed asser ii. Required: (a) Schedule of changes in…
A: SOLUTION- A fund flow statement is a statement prepared to analyse the reasons for changes in the…
Q: Identify the cash flow activity involve when an entity sold equipment at book value Options: • Not…
A: Solution: when an entity sold equipment at book value, it receives cash for sale of equipment and…
Q: Which of the following statements is not true as regards to matching strategy? a. all assets should…
A: The matching strategy is a financial strategy related to investments which state that the…
Q: The capital budgeting is associated with Select one: a. Short term assets b. Fixed assets c. None of…
A: Capital budgeting is a process wherein the business uses to determine which investment projects or…
Q: Speculative Balance refers to holding of cash for future investment opportunities.
A: Speculative balance is the method used by the investors of holding money for making future…
Q: Investing activities are defined as 'the acquisition and disposal of long-term assets (including…
A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises…
Q: The funds invested in current assets are termed as
A: When a business is incorporated by the owners, there are some investments made by the…
Q: A primary strength of the net present value method for analyzing investments is that it accounts for…
A: Net present value method means where the cash inflow has been discounted at given rate of interest…
Q: Cash float” would be which type of account? a.Expense b.Current asset c.Proprietary d.Fixed…
A: Cash float means the difference between the amount of cash shown in the books of the entity and the…
Q: Which of the following constitutes an internal source of funds Oa. Corporate bonds b. Common stock…
A: A company can generate funds from two sources, i.e., internally and externally. Internal sources of…
Q: TRUE OR FALSE? Cash set aside for bonds payable that will mature currently is shown as current…
A: The assets can be classified as current assets or non current assets. The current assets can be…
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- The funds invested in current assets are termed as Select one: a. long term assets b. Short term loans c. None of the options d. Net Working Capital e. Short-term liabilitiesThe ratio establishes the relationship between fixed assets and long-terms funds is [A] current ratio [B] fixed assets ratio [C] fixed assets turnover ratio [D] debt equity ratioOnly one of the methods of evaluating capital investments discussed in Chapter 26 utilizes the annual aftertax net income (and not the annual net cash flows) in its calculation. This method is which of the following? Select one: a. Payback Period Method b. Accounting Rate of Return (ARR) Method c. Net Present Value (NPV) Method d. Internal Rate of Return (IRR) Method e. None of the above
- ..............is the organizations , institutions that provide long term funds . Select one : a . capital market b . Secondary market. c . Money market d . None e. Primary marketAsset management includes:A. using money market instruments to cover liquidityB. using cash reserves to cover liquidityC. borrowing fed funds to cover liquidityD. a and bCapital gearing ratio indicates the relationship between A. assets and capital B. loans and capital C. equity shareholders fund and long term borrowed funds D. debentures and share capital
- Use IFRS 9 to determine how to subsequently measure the following financial assets. Three choices of measurement basis are amortized cost, fair value through other comprehensive income, and fair value through profit or loss. Provide justification for your choice. Long-term loans that are held for collecting contractual cash flows till their maturities, but may be subsequently sold if the loans’ credit risk substantially increases. Investments in bonds that are held for collecting contractual cash flows, and may be subsequently sold to re-invest the cash in financial assets with a higher return. Subprime (high risk) mortgage loans that were originated by a mortgage-broker firm that always sell these loans to banks right after their origination. Forward contracts that an EU bank purchased to hedge the exposure to changes in fair value of US$-denominated loans. Investment in bonds that are convertible into common stock of the bond issuer. Investment in bonds that pay a variable market…Capital structure refers to respective proportion of the two sources of funds on the balance sheet. True FalseThese are ways in which depository financial institutions measure liquidity risk except: a. Liquid assets to total assets. b. Liquid assets to long term liabilities. c. Maturity gap analysis return. d. Net liquidity statement.
- In funds flow statement, repayment of long-term loans is [A] application of fund [B] source of cash [C] application of cash [D] source of fund,Match the following terms with the appropriate definition.Effective yield or interest rateMonetary liabilityCompound interestPresent ValueFuture value of a single amountA.Fixed obligation to pay an amount in cash.B.The rate at which money will actually grow.C.Interest accumulates on interest.D.Current worth of future cash flows.E.The money to which an amount invested will grow over time.Which of the following statements is incorrect? Cash fund that is being held specifically for the retirement of long-term debts not maturing currently should be excluded form current assets and shown as a noncurrent investment Cash and cash equivalents is always presented as the first line item in the statement of financial position Investments that can be liquidated at once and with little risk of loss of principal may be classified as cash equivalent and included in the caption "Cash and Cash equivalents" Cash that is restricted and not available for use within one year from the end of reporting period should be included in noncurrent assets
