When is the midmonth convention used? Give an example?

Q: What qualifies as a like-kind exchange?

A: Definition: Property, plant, and equipment: These assets are long lived economic resources which are…

Q: What is meant by debentures?

A: A company has several sources from where it can raise funds. It can issue equity shares and the…

Q: What is seasonal dating?

A: It arranges the invoice date or the date at which the discount and credit period starts, to a time…

Q: What does the term “end-of-period convention” mean? What does it not mean?

A: End-of-period convention is an accounting concept according to which all income and outgoing payment…

Q: What is a “grant date”?

A: A stock option is a contract that allows its holder to either buy or sell a certain number of shares…

Q: Explain Accrual concept and provide example.

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What is the difference in Forward Contracts and Future Contracts

A:

Q: Define the term Equal-Payment Series?

A: The goal of this method of investment is to determine the present value of an equivalent payment…

Q: What is Eurobond?

A: Eurobond It is a debt instrument that is designated in money other than the nation's home cash or…

Q: In the phrase “end-of-period convention,” the word “period” refers to what?

A: Introduction: Revenues are the profits or benefits that one person is having, while costs are the…

Q: Define compound interest

A: Compound interest: Compound interest is the accumulation of interest to the principal amount of a…

Q: What would be the TIE ratio under its relaxed policy?

A: Lets understand the basics. Times earned interest ratio indicates how many times company EBIT covers…

Q: nator of the increment or of Diluted EPS is?

A: DEPS= Earnings availble for Equity shareholders + Savings in earnings or interest due to conversion…

Q: What are Equal-Payment Series?

A: Equal payment refers to the equal net periodic cash flows that an investor receives during the life…

Q: What is a prior-period adjustment?

A: Statement of retained earnings: This is a financial statement that shows the amount of net income…

Q: What is a debenture bond?

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

Q: What are three similarities of a future contract and a forward contract?

A: Forwards are the contract made for the private placements while futures are traded under stock…

Q: What is the midmonth convention?

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: What would be the difference between the CMO with and without the accrual class?

A: A collateral mortgage obligation is a financial instrument that is backed up by the mortgage to be…

Q: What are the critearia for determining if a fiduaciary relationship exists?

A: Fiduciary relationship represents the relationship that is between the trustee and beneficiary.

Q: What are the different types of future contracts? Explain each.

A: Future contract is referred to as the contract, which is made between the two parties where the…

Q: Define semiannual compounding

A: Compounding is the interest charged on interest. When any investment is made for certain years, the…

Q: Define the Equal-Payment Series?

A: Answer: The main goal of this investment method is to calculate the present value of equivalent…

Q: What is a forward contract?

A: Introduction: This question is related to the concept of financial derivatives. Derivative…

Q: When is a forward contract preferred over an option contract ?

A: Forward contract and Option contract Option contract gives the right to the holder to buy or sell…

Q: What is the purpose of the accrual tranche?

A: The diverse CMO bunches are known as a tranche. Gathering tranche too known as Z tranche is the…

Q: utio

A: In general, a "eligible rollover distribution" is any payment paid in a lump sum or over a period of…

Q: What is an option? How does an Option differ from a forward or future contract?

A: Derivative Security: A derivative is financial security whose price and value are determined based…

Q: What is Minimum Subscription?

A: Issuance of stock:It refers to the number of shares that are sold to the stockholders from number of…

Q: Explain what accruals and deferrals do and give examples of each.

A:

Q: Explain Property Type Swap?

A: Answer: Swap alludes to exchange with another between the parties involved in one monetary…

Q: Compare and contrast the istijrar contract with its closest conventional contract. What are the main…

A: Istijrar refers to the purchase of commodities in varying quantities on a regular basis. In Islamic…

Q: What's the adjustment?

A: The answer is provided as follows:

Q: What is GAAP? When was it formed?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles (GAAP) is…

Q: What are the three principal types of REITs?

A: The question is based on the concept of Real Estate Investment trust (REIT). They are an investment…

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: What is an Option Contract?

A: An Option contract is an agreement between two parties to buy or sell an underlying asset, at a…

Q: Define the term the equal-payment-series compound-amount factor?

A: Equal-payment-series compound-amount factor: Equal payment series compound-amount factor is utilized…

Q: Give examples of the Equal Payment Series?

A: The goal of this method of investment is to determine the present value of an equivalent payment…

Q: What's forex

A: Investors have the option to invest in several different securities that are being traded around the…

Q: Define the term Non-comparable Compounding and Payment periods?

A: The question is based on the concept of interest rate calculation, which depend on the compounding…

Q: What is Fama-French three-factor model?

A: The Capital asset pricing model (CAPM) is the model which shows the relationship between the…