three reasons for such expectation gap

Q: What is breakeven analysis? Give three examples?

A: Breakeven analysis is an analysis method to derive the point of sales where the contribution…

Q: What is undercosting? Explain? Give three examples?

A: Under Costing: Under costing is a state in which the estimated or reported cost of a product is less…

Q: Explain the differences between a PPO and an HMO.

A: The question is based on the concept of different types of health insurance policy and their…

Q: Label each of the following statements as either true (“T”) or false (“F”). An opportunity cost is…

A: Answer:   True.

Q: Define stand-alone risk

A: Stand-alone risk:This refers to the risk linked with a single aspect of a firm or any particular…

Q: Discuss any two limitations of  Ratio analysis.

A: Limitations of ratio analysis:Ratios are mostly computed based on historical costs as a result;…

Q: Briefly explain two measures that can be used in narrowing down the expectation gap

A: Ans. The audit expectation gap is defined as the difference between what the public expects from an…

Q: Which of the following is an expected advantage of implementing IFRS?

A: International Financial Reporting Standards, also known as IFRS, basically represents the standards…

Q: Explain all differences between GAAP and IFRS

A: Generally accepted accounting principle (GAAP) It is the common set of procedures, principles, and…

Q: Describe two generic strategies.

A: Strategy: The word strategy may also be regarded as generalship. It may be defined as the…

Q: Explain pure expectations theory

A: It estimates the future interest without considering the maturity risk. According to the expectation…

Q: What is the difference between vertical analysis and horizontal analysis?

A: Explain the difference between the horizontal and vertical analysis. Horizontal Analysis: it…

Q: What is the difference between the Cumberland Gap and GAAP?

A: Answer:-  Difference meaning:- Difference is an important notion in philosophy, referring to the…

Q: What are the advantages and limitations of ratio analysis? Identify three advantage and three…

A: Ratio Analysis is the use of accounting ratios to forecast or review the financial performance of a…

Q: Find three key ideas that underpin GAAS and explain why they are so important.

A: Concept: GAAS is generally accepted auditing standards. It is to be followed by the auditors while…

Q: Briefly explain two measures which can be used in narrowing down the expectation gap

A: Expectation gap is the term which is defined as the gap among the users of assurance reports…

Q: mation would be considered

A: The extremely sensitive output can be defined as the information or output that must be guarded from…

Q: b) What are the three models proposed as extensions of the GARCH model? Describe their advantages…

A: The auto regressive heteroskedasticity (GARCH) plan is a technique for predicting financial market…

Q: 1. What are the differences between call and put options?

A:

Q: What are four methods for estimating a target’s value?

A: The four methods for estimating the target’s value are discussed as follows: DCF method – This is…

Q: What is the difference between I and G spread measures?

A: The yield spread of the bond reflects the difference between the YTM(Yield to Maturity) of various…

Q: What are the four basic assumptions underlie GAAP?

A:

Q: Explain the differences between IFRS and GAAP

A: GAAP is a common set of accepted accounting principles, standards, and procedures that companies and…

Q: Describe the Internal-Rate-of-Return Criterion?

A: Internal rate of return (IRR) is defined as the rate of discount at which the NPV of human capital…

Q: Distinguish between cumulative or noncumulative?

A: cumulative and noncumulative preferred is assumed since the key term is not given.

Q: What is GAAP and why it is needed?

A: GAAP - Generally Accepted Accounting Principles

Q: Define asymmetric hedge

A: A strategy that helps to reduce the loss which occurs from the movement of the asset's price is term…

Q: Explain four aspects of rate-of-return analysis?

A: The return of return is the return on investment made when the time value cashflows turns to net…

Q: What key assumption underlies the pure expectations theory?

A: Pure expectations theory in finance refers to the fact that the forward rates are nothing but the…

Q: What is the difference between YTD and YoY return? Provide an example

A: In the question they have asked regarding YTD and YOY differences between them so they will be…

Q: Explain Expectations Theory?

A: Expectations theory attempts to predict what short-term interest rates will be in the future based…

Q: Explain the relationship between the conventionaL PW criterion and the B/C ratio?

A: The relationship between the cost of the project and benefits earned from the project is measured by…

Q: Present the internal rate of return criterion and its strengths and weaknesses.

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: Define risk

A: Risk can be defined as whenever there are chances that the investments’ actual outcomes are…

Q: The expectations gap is

A: The Answer :

Q: Define GAP Analysis

A: Gap Analysis is done by the company to fill the gaps and improve the performance of the company.…

Q: What are the two stages in risk assessment?

A: Risk assessment is the process which involves analysis & identification of events that can have…

Q: What does the quick ratio measure?

A: Ratio Analysis is a financial tool used to derive conclusions about the company’s health and overall…

Q: What are the four basic assumptions underlying GAAP?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Liquidity Risk Exposure

Answer: c