What are the different liquidity tools?

Q: What are the characteristics of a liquid asset? Give some examples.

A: A liquid asset is a type of asset that can be quickly converted into cash.

Q: Vertical Analysis

A: Trend analysis is an analysis done by the companies to understand their current performance with…

Q: What is operating leverage, and for what is it used?

A: Operating Leverage is a cost-accounting formula used to measure the growth of its operating income.…

Q: What is meant by a dilutive security?

A: Dilutive security is a type of investment security that helps the company increase its equity…

Q: What is physical asset market?

A: Definition: The Market where tangible assets can be purchases, sold and liquidity in case of default…

Q: Why is partitioning an internal rate of return important?

A: Introduction: There are two cash flow components which can form the portioning of internal rate of…

Q: Which are the more complex applications of rate-of-return techniques/

A: The question is based on the concept of rate of return and its application in finance

Q: Define Net realizable value.

A: Net realizable value is the expected cash to be received against a given asset.  Thus, Net…

Q: What is Operating Leverage and is it good or bad?

A: It can be characterized as how much a firm brings about a mix of fixed and variable expenses. In…

Q: robability

A: Expected return can be defined as the return which is obtained by multiplying the potential outcome…

Q: What are solvency ratios and what do they measure?

A: Solvency ratios of the company indicates that whether cash flows of the company are sufficient to…

Q: Distinguish between Order of Liquidity and Order of Permanence.

A: The financial statements of a firm is presented in order to assess the performance and position of…

Q: How efficient is an Analysis at the account level technique?

A: The question is to discuss efficiency of financial analysis at account level or based on the data…

Q: What is margin call?

A: The margin is defined as the money required from the traders for futures exchanges.  It is to…

Q: What is LIBOR?

A: London Interbank bank offering rate (LIBOR): it's a financial interest rate between two bank or…

Q: What is lumpy assets?

A: Technological considerations determine in several sectors that, if a business wants to be…

Q: What is securitization?

A: Introduction: Finance reflects a broad variety of spaces where decisions can be taken relative to…

Q: What ‘LIBOR’ stands for?

A: LIBOR :  LIBOR, which stands for London Interbank Offered Rate, is a globally accepted key…

Q: What is liquid asset?

A: A liquid asset can be described as the asset which can be sold into the market easily and can be…

Q: What is GAAP?

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Q: What is liquidity (security)?

A: Introduction: Liquidity is associated to rapid access to cash. Persons hold assets or security, and…

Q: How do fixed asset systems differ from purchases systems?

A: Definition: Purchase system: The identification and procurement of the inventory needs for the…

Q: What is the meaning of operating leverage?

A: Leverage ratio: It overlooks the mixture of debt and equity which is required for analyzing the…

Q: What is the law of supply?

A: When the price of any given good increases, the supply of the said good also increases. But this…

Q: What is the discount factor?

A: Discount factor, also known as the conversion factor refers to the value which is used to calculate…

Q: What is consignment

A: Consignment is a form of arrangement between two parties in which one party sends goods to another…

Q: What is disbursal rate

A: Disbursal rate is an important concept in the realm of financial markets and in the realm of fintech…

Q: What is Asset Management?

A: Asset management (turn over) ratios compare an organization's assets with its turnover. Asset…

Q: What conditions increase the demand for reliable information?

A: Nowadays it is very difficult to trust someone. cheating and frauds have become so common. which…

Q: What is operating leverage?

A:

Q: Explain the accounting for hedges.

A: Hedge:   A hedge refers to a financial instrument that are used by investors to offset the potential…

Q: Define common pool problem

A: The common pool resources are those resources that are commonly used by everyone and no one is the…

Q: What are finanicial transactions?

A: Transaction process system: It is a transaction process system can be defined as a system which is…

Q: Explain floater tranche?

A: Tranche: The is the coatings of pooled securities having diverse risk factors for diverse level on…

Q: what is the total value

A: Introduction: The term perpetuity is also an annuity wherein the series of payments would continue…

Q: What do we mean by a lump-sum Problem?

A: A lump-sum payment is a substantial amount of money paid all at once as opposed to in installments.…

Q: What are some advantages of asset allocation?

A: The advantages of applying asset allocation:   Diversification:  Long-term investing:…

Q: define liquidity black hole

A: When liquidity is depleted, trading financial assets becomes affordable and asset prices fall…

Q: Explain the term supply chain.

A: The goods and services available with the suppliers at a given point of time which the suppliers are…

Q: What should the transfer price be and why?

A: Given that: Transfer price as proposed by Top Division = $256 Price that is charge to outside…

Q: solvency ratios

A: Solvency ratio indicates the company's ability to pay off its debt obligation.

Q: Define Securitization.

A: