The selection of the appropriate concept of capital by an entity should be based on the needs of the users of its financial statements.   TRUE OR FALSE

Q: Organizations determine whether to take on debt and how much to take on are common and necessary…

A: A Companies consistently look for wellsprings of subsidizing to develop the business. Subsidizing,…

Q: how the capital structure, cost of capital, and dividend decisions are related?

A: A dividend is a distribution of a portion of a corporation's earnings to a class of shareholders…

Q: Depending on the business model for managing financial assets, an entity shall classify financial…

A: A financial asset is a liquid asset with a contractual right or ownership claim as its source of…

Q: Working capital is an indication of the firm’s ________.A. asset utilizationB. amount of noncurrent…

A: Working capital (WC) seems to be a financial statistic that indicates the operating liquidity…

Q: Describe the methods used for analyzing the capital investments of organizations.

A: Capital investment analysis: Capital investment analysis is the process of decision making, planning…

Q: Which of the following regarding the weighted-average cost of capital is true?  Group of answer…

A: The weighted average cost of capital is the average rate that a company is expected to pay to its…

Q: You find capital in the same side of the balance sheet as liabilites because of ______________.…

A: From the business point of view, capital is also considered as a liability towards the owner…

Q: If a company has asset classes that include short-term and long-term investments, what criteria…

A: Cash Equivalents The short term investments that can be easily converted into cash in the business…

Q: How does the following contributed to capital market a) Information disclosure b)Liberalisation…

A: A financial market seems to be a place where consumers trade financial securities including bonds,…

Q: Computation of cost of capital is significant part of the financial management to decide the capital…

A: The cost of capital is the minimum rate of return that a company must earn on its investments to…

Q: a. Explain the description and show examples of the following terms completely and clearly: implicit…

A: The financial system of a nation includes different components such as financial institutions,…

Q: Regarding the trade-off theory, capital structure is a trade-off between: O tangible and intangible…

A: The capital structure refers to the mix of various available sources of capital which is used by a…

Q: What are the Required disclosures about each major class of capital assets?

A: Capital asset refers to the assets with a longer useful life i.e. more than a year and is not…

Q: Explain why firms must correctly classify expenditures incurred as either capital expenditure or…

A: Capital expenditure is something which has been incurred on something that will provide benefits for…

Q: Explain the EMT- EPS analysis and various factors affecting the capital structure decision of the…

A: This kind of analysis is beneficial to the company. It helps the company in knowing the best mix of…

Q: i) calculates the capital expenditure and revenue expenditure that adliana incurred ii)explain why…

A: Capital expenditures are typically one-time large purchases of fixed assets that will be used for…

Q: ly how taxation (both corpora

A: Introduction : In simple words, capital structure refers to the composition of different types of…

Q: In relation to investments and fair value, what are the two categories of investments that companies…

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: How were UBI's shareholders' funds and capital sensitive to various regulatory norms?

A: Regulatory Standards lay down all the laws, norms, and regulatory authority who regulates financial…

Q: Which one of the following is an internal characteristic that can affect the value of an investmen…

A: Internal Characteristics mean factors within the organization. It excludes political events,…

Q: How do the types of assets used affect a firm’s capital structure?

A: There are 2 types of assets, fixed assets and current assets. Fixed assets have life for long period…

Q: EXAMINE THE IMPOTANCE OF WORKING CAPITAL TO A  BUSINESS OR COMPANY (Application of FASB…

A: importance of working capital are a follows

Q: How Examples of questions and answers regarding reporting for the capital position according to PSAK…

A: Financial reporting: Financial reporting can be defined as the financial information of organization…

Q: objective of financial management

A: Payment of Reasonable Dividend comes under Basic Objective of Financial management.

Q: how would participants interact to facilitate capital market activities?

A: Capital market is the market that deals in financial assets,  which have a longer or indefinite…

Q: investments in equity instruments are financial assets because they are a) cash equivalents b)…

A: Financial assets are the assets that are derived from contractual claims. It is a more liquid asset…

Q: hich of the following statements best describes how a corporation determines its cost of capital?…

A: A capital structure of a firm is a mix of debt and equity used for financing its long term…

Q: How do you envisage the use of principle based reporting for the six types of capital that companies…

A: The following response has been produced in a step-by-step approach.

Q: Discuss the concept of an optimal capital structure? 2- Distinguish between business and financial…

A: optimal capital structure is mix of equity and debt and also weighted average cost of capital.

Q: ted ability have an impact on the financial statement? How does each one of them might raise…

A: A sole proprietorship, often known as a sole trader or simply a proprietorship, is a commercial…

Q: Describe the order of claimants and how it impacts the returns that various providers of capital…

A: Claimants refer to the creditors who are entitled to receive the payments, from the debtor…

Q: Which of the following statements regarding the conceptual framework is incorrect? a. The conceptual…

A: Conceptual framework means the way the accounts is prepared , accounting standard is build and…

Q: A financial institution's liquid asset management should be explained

A: Introduction These assets may be readily transformed into cash and other marketable assets. For…

Q: Define fungibility, and explain why it matters in financial decisionmaking.

A: Fungibility: Something which is fungible is easily substitutable or exchangeable. Fungibility exists…