What are some recent trends regarding absolute versus relativepriority doctrines?

Q: How can the Present-Worth Comparison be done?

A: The present worth method of comparison will diminish the cash flows of every choice to time zero by…

Q: What does the term “attainable set” mean?

A: The art of deciding the investment mix and policy, making the investments equivalent to its…

Q: What have been the results of empirical tests of the dividendtheories?

A: Answer: Constructing a perfect empirical test of the relation between pay-out strategy and the…

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: What is Glass-Steagall Act?

A: Glass-Steagall Act splits up the investment and commercial banking segments of an investment bank.

Q: What is the empirical evidence on Uncovered Interest Parity?

A: Interest parity can be subdivided into two parts. these parts are: Covered interest parity…

Q: what does fichacuristic mean?

A: NOTE: The word "fichacuristic" is a spelling/typo error of the word "futuristic" in Step 2 first…

Q: What are the major differences between the IFRS conceptual framework and the FASB conceptual…

A: ANSWER     The components of the conceptual framework for ­financial reporting include recognition…

Q: What is meant by the terms “new issue” and “seasoned issue”?

A: Answer: A new issue is a mentioned to a security, which was first registered, issued and sold to the…

Q: What assumptions and limitations does multiples valuation have?

A: Multiple valuation or relative valuation is a market based valuation method where the target company…

Q: What is a modified retrospective approach of FASB?

A: Definition: Financial accounting standards board (FASB): This is the organization that creates,…

Q: What does maturity matching mean, and what is the logic behindthis policy?

A: Maturity matching It is a financing strategy for working capital. Under this strategy, financing of…

Q: How fair value measurement?

A: Fair Value In Accounting term Fair Value means the recognition of amount which are actually value…

Q: Which of the above statements is/are true?

A: Factory overhead allocation: the factory overhead of a company can only be calculated at the end of…

Q: What is the definition of "FMS option"?

A: Stock Option: An investor who purchases a stock option has the right, but not the responsibility, to…

Q: What is the intuition behind multiples or comparables valuation? What are the advantages of this…

A: Answer : What is the intuition behind multiples or comparable valuation? The intuition behind…

Q: Which statement is true?

A: Financial Statements: These are records of the finance relating activities and positions of the…

Q: What are the Differences in Maturities?

A: Maturities in the context of the bond mean that bonds are issued for a specific period of time. It…

Q: Are the differences between IFRS and U.S. GAAP significant? Explain

A: IFRS:-These are the International Financial Reporting Standards which followed by the companies,…

Q: What is discounting and compounding? What is the difference between them?

A: We need to use the equation of time value of money to explain the concept of discounting and…

Q: Which of the following statement is correct?

A: Pecking Order Theory: As per this theory, the preference for sources for funds is first retained…

Q: Distinguish between cumulative or noncumulative?

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

Q: What are the differences between GAAP and IFRS?

A: The companies are required to follow a set of guidelines and rules in the presentation of financial…

Q: Use the AE Method to Compare Mutually Exclusive Alternatives?

A: In capital budgeting, AE (equivalent annual cost) method is the total cost of maintaining and…

Q: How can we use the AE Method to Compare Mutually Exclusive Alternatives?

A: The AE method is used to compare mutually exclusive alternative as explained below,

Q: What is the definition of “actuarial present value”?

A: Accumulated Benefit Obligation: It is an inexact rate of a company's pension plan liability towards…

Q: Define the term conservatism concept.

A: Conservatism: Conservatism is an accounting assumption, it is as an approach used by the accountants…

Q: Which of the following statements is correct?

A: Accounts payable: the amount that the company should to pay in a specified future date Bad Debt: the…

Q: What are intracompany comparisons? What are intercompany comparisons? How do they differ?

A: The examination of two or more procedures, papers, benchmark datasets, or other items is referred to…

Q: In what circumstances is the compressed adjustedpresent value (APV) model useful, and how wouldit be…

A: The question is based on the concept of adjusted present value (APV). APV uses net present value…

Q: What are the differences between adjunct account and a contra account?

A: Definition:An adjunct account increases the book value of a liability account.A contra Account…

Q: What is the fundamental difference between US GAAP and IFRS?

A: US GAAP are the generally accepted accounting principles issued by United States of America to…

Q: Compare the Mutually Exclusive Alternatives, based on IRR?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: Which of the following is a correct statement?

A: When a sole property dies during the financial year leaving the estate that is known as Deceased…

Q: Describe the term Legitimized disagreement and skepticism?

A: Disagreement means not giving the consent or objecting to something such as a proposal or people's…

Q: What do you understand by current ratio? What are it uses? What are its limitations?

A: As per Bartleby policy, only one question will be answered. A ratio is simply a mathematical…

Q: Distinguish between participating or nonparticipating?

A:

Q: Which of the following statements is CORRECT?

A: DIVIDEND POLICY  Dividend policy is the policy that determines the assigning of earnings into…

Q: What is notional value?

A: Notional value is used to value the underlying asset. In simple words it tells how much of value a…

Q: Define Conservatism.

A: Conservatism: Conservatism is an accounting assumption, it is as an approach used by the accountants…

Q: What are the potential issues with using the P/E multiple for relative valuation?

A: Relative valuation is referred as the simple method through which the value of company is estimated…

Q: What is the definition of “retrospective application”?

A: The first book that the company will prepare is the journal book in which all the transactions of…