What is hedge accounting?

Q: what is risk and return in the context of financial decision making?

A: Risk and return are two very important concept used in any financial decision making. Two financial…

Q: What is financial risk? How is it related to business risk?

A: The financial risk is the risk which is related to the non-payment of the fixed financial charges.…

Q: What are the two essential characteristics of usefulfinancial information? What other…

A: Financial information: Financial information refers to the data of the transactions that are…

Q: What are the different risks associated in the accounting of investments?

A: Answer: There is always risk while auditing and accounting.

Q: What are the advantages of balance sheet?

A: Financial Statement:   A financial statement is the complete record of financial transactions that…

Q: What is equity capital?

A: The business cannot operate without funds and the company arranges these funds for the business…

Q: What is financial engineering?

A: Answer: Financial engineering is a process of solving problems and financial problems by using…

Q: Define financial intermediary

A: A financial intermediary is a firm that goes about as an agent in a money related exchange between…

Q: What is investment bank?

A: Investment bank: An investment bank (IB) is an intermediary of finance that does a diverse service.…

Q: ExplainValuing REITs as Investments?

A: Valuing REITs as investments: A typical way for the calculation of REIT is to find the Net asset…

Q: What is a financial security?

A: Investors use financial security to be secured financially as they can get some income on periodic…

Q: What is financial risk, and how does it arise?

A: Answer: Usually, financial risk refers to a situation where a company is not able to pay its fixed…

Q: How can we measure the return on common equity?

A: The return on equity is the percentage earned on the equity investment made by the company. It shows…

Q: What is arbitrage?

A: Arbitrage It is the buying and offering of an asset to benefit from a distinction within the cost…

Q: What role do marketable securities play in current asset management?

A: Answer: The management of current assets has acquired a distinctive positive for marketable…

Q: What is equity security?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Which of the following is an example of financial intermediation?

A: Financial intermediation is refer as the process where a thrid party transacts with parties who have…

Q: What is the equity multiplier, and why is it used?

A: Equity multiplier A financial leverage ratio. It is helpful in the measurement of the proportionate…

Q: What does financing activities includes?

A: Cash Flow Statement:   It is a financial statement prepared by a company to report their cash…

Q: What is the purpose of a cash flow hedge?

A:

Q: Who are financial intermediaries?

A: Introduction: Financial intermediaries play an important role in financial markets & offer a…

Q: What is equity method accounting?

A: Equity method of accounting is the accounting method used to account for investments in associates…

Q: What are the characteristics of equity investment?

A:

Q: fundament

A: Answer The fundamental accounting equation, conjointly known as the record equation, represents the…

Q: What is a financial instrument?

A: Introduction: A financial instrument is a physical or computer-generated document showing a legal…

Q: Define the term s liquidity position?

A: Definition: Liquidity: Liquidity is the capability of a company to pay the short-term liabilities…

Q: What mechanisms operate the chain of building relationship equity?

A: The B2C mechanism is the credible chain for building the relationships equity because it is…

Q: What is the accounting rate of return?

A:

Q: What are financial obligations? How they can be overcome?

A: Liabilities:The claims creditors have over assets or resources of a company are referred to as…

Q: What is financial asset market?

A: Financial assets generally include bonds, stocks, mutual funds, cash, deposits with bank etc. These…

Q: What is financial intermediary?

A: A financial system comprises of financial intermediaries to intermediate and facilitate the…

Q: What is equity?

A: Balance sheet is one of the financial statements of a company, prepared at the end of the financial…

Q: What is liquidity (corporation)?

A: Ability of a firm to raise the cash whenever there is need is known as liquidity of the company.…

Q: What does investing activities includes?

A: Definition: Statement of cash flows: The statement of cash flow is a financial statement that shows…

Q: plockchain financial transactions?

A: Blockchain helps in making transparency in the financing industry while users are considering the…

Q: What are equity carve-outs?

A: Introduction: Merger is defined as the mechanism in which the corporate unit, management and…

Q: Explain seller financing?

A: Seller financing is the term used in real estate deals when the buyer does not approach any…

Q: what is liability? what is equity?

A: Accounting:   Accounting is the art of recording, classifying and summarizing in a significant…

Q: Describe the Debt Management Analysis?

A: Debt is an amount of money borrowed by one person from another person. Debt is utilized by numerous…

Q: what is equity analysis?

A: The person who takes the equity capital of the company is known as a stakeholder of the company. The…

Q: what is equity valuation?

A: The phrase "equity valuation" refers to all tools and procedures used by investors to determine the…

Q: What is the strength of equity method?

A: Investments:   Companies invest in stocks and bonds of other companies or governmental entity to…

Q: What can be understood from hedge accounting?

A:

Q: What Are Liabilities and Equity?

A: includes assets, liabilities, equity (equity), short-term loans, long-term loans, and other relevant…

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.