What is the financing surplus or deficit? How is it calculated?

Q: How is the revaluation surplus handled under the revaluation model?

A: The question is related to Revaluation model under IAS16 Property, Plant and Equipment. Under this…

Q: Which is more important from a finance perspective-net income or operating cash flow? What is the…

A: Net income is calculated in the income statement whereas and operating cash flows are calculated in…

Q: what is the meaning, purpose and formula of External Financing Need?

A: Finance Finance refers to the provision of money at the time it is required. Every business needs…

Q: What is a debt security?

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

Q: A finance charge includes which elements?

A: Finance charge is a very common occurrence associated with the use of credit. For example users of…

Q: How to calculate Present Value Interest Factors?

A: PVIF is known as Present Value Interest Factor. PVIF refers to a factor that is very useful in…

Q: What is financing surplus?

A: Financing surplusThe financial surplus that can be used or plough back to the company for funding…

Q: How much is the estimated payment to liabilities with priority?

A: The determination of estimated payment to Liabilities with priority is shown hereunder : The…

Q: How is capital budgeting similar to security valuation? How is it different?

A: Capital budgeting is the process of evaluating various projects' net present value to arrive at a…

Q: Why What kind of stream of income does a debt security pay for the duration of the security? A fixed…

A: The Answer

Q: What is issue of payments deficits

A: Introduction:- payment of deficit means:- Country imports more goods, services, and capital than…

Q: What is a federal budget deficit or surplus? How does this affectinterest rates?

A: The question is based on the concept of federal budget position and its impact on the prevailing…

Q: What is the relationship among cumulative current account balance, cumulative budget balance and %…

A: The cumulative current account reflects the import and export of goods and services from the nation,…

Q: What is financial analysis?

A: The question is based on the concept of financial decision making. Financial analysis are the set of…

Q: What are assets in finance?

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: What does financing activities includes?

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

Q: Define trade balance (deficit or surplus)

A: Trade balance commonly known as international trade balance, balance of trade The difference between…

Q: What are the effects of Borrowing on Project Cash Flows?

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: What does the rate of return on total assets measure, and how is it calculated?

A:

Q: On what does the interest paid on a cash investment depend?

A: Cash investment An investment (short-term) under which one makes a deposit the cash and also…

Q: Define Incremental Borrowing Cost?

A: Incremental borrowing cost is used in the context of the cost of borrowing additional funds.

Q: Define reserve borrowing capacity

A: The question is based on the concept of capacity to borrowing of a firm based on the concept of…

Q: What is payout period and how is it calculated?

A: Companies employ various methods in the process of selection of the most financially appropriate…

Q: what is the return asset that is used in financial statement analysis?

A: Here in this case we need to understand the meaning of return on asset ratio of financial statement…

Q: What is meant by the term payback period? How is this criterion sometimes used in capital budgeting?

A:

Q: What is financing deficit ?

A: When the amount of expenses exceeds the amount of revenues in a particular period is known as the…

Q: impacts  of inflation on money investment

A: Inflation occurs when prices across a sector or an industry increases, thereby decreasing the…

Q: What does “nonrecourse” financing mean?

A: Nonrecourse financing is a branch of commercial lending. It makes the lender only to repay from the…

Q: Define Debt Issue Costs.

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: What is Capital Fund? How is it calculated?

A: Capital Fund: It is the Excess of assets over liabilities for non profit organisations is termed as…

Q: Explain Loan versus Project Cash Flows?

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: What is the key output of a financial plan?

A: A financial plan refers to the broader evaluation of an individual current and financial future…

Q: what is the difference between investing and financing activities?

A: Cash flow statement include cash flows resulting from operating activities, investing activities and…

Q: Define exposure, differentiating between accounting and economic exposure. What role does inflation…

A: Exposure means uncontrollable future events which can affect adversely. In the mechanism of exchange…

Q: How is Borrowing capitalized

A: Ans. Borrowing costs are interest and other expenses or costs that an entity incurs in connection…

Q: What is financial market?

A: Finance is the management activities that are related to money. It includes the activities like…

Q: What is Interest Risk and Cash Flow Risk?

A: Risk exists in all business operations and transactions however the business should take actions to…

Q: Distinguish between: Money market and capital market?

A: MONEY MARKET- The money market refers to commercialism in very short debt investments. At the…