Will the carrying value of a long-term asset be equivalent to its market value under typical circumstances?

Q: How do you calculate Fixed Asset Turnover? What is the Free Cash Flow Ratio? What is the difference…

A: The answers for the questions on accounting ratios are discussed hereunder : Fixed Assets turn over…

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: Is long term investment is classified as non-current assets?

A: Generally, the liquidity of the assets plays a significant role in determining whether they are…

Q: What are the absolute measures of investment worth?

A: There are various approaches that can be utilized to decide a value or worth for the venture. Net…

Q: How is the value of an asset determined by predicted future cash flows?

A: The Answer

Q: According to the Capital Asset Pricing Model, the expected return on a risky asset depends on three…

A: Capital Asset pricing Model is used to determine the cost or expected rate of return of a stock. It…

Q: Explain what effect will an upward asset revaluation have on subsequent periods’ profits

A: The revaluation of assets means the change in the value of assets over a period of time this made…

Q: In a theoretical sense, the financial value of any asset is the present value of:

A: The Answer

Q: What are the Effects of Inflation on Projects with Depreciable Assets?

A: Answer: A depreciable asset is nothing a property that gives more economic benefit over a tax period…

Q: In order to calculate the cost of a long-term asset that is financed with long-term debt, present…

A: Given a certain rate of return, present value (PV) is the current value of a future sum of money or…

Q: The primary measurement basis is a.) The current market price if the asset currently held was sold…

A: there are different measurement devices that are used- historical cost current cost net realizable…

Q: Must two assets with the same fundamental characteristics (e.g. same payment stream, same credit…

A: Assets are valued on the basis of profit,cash flow and associated risk.But there value may not be…

Q: Which of the following has the right to sell an asset at a predetermined price?

A: A put option is an instrument which provides its holder an option to sell an underlying asset on a…

Q: What is the Fama-MacBeth Method in asset pricing assumptions?

A: Fama Mac Beth method is kind of regression method used for determining of parameters for like CAPM…

Q: Why is the adjusted present value approach appropriate forsituations with a changing capital…

A: Capital structure is the distribution of various sources of funding to the organization like debt,…

Q: what are some pros and cons of holding high level of current assets in relation to sale?

A:

Q: Inflation affects the historical cost of an asset over time. TRUE OR FALSE.

A: Concept of historical cost of an Assets Historical cost of an assets refers to the cost at which an…

Q: Which items comprise operating current assets? Why is itreasonable to assume that they grow…

A: Operating current assets are the short-term assets utilized to promote a business's processes

Q: What does the asset turnover ratio measure, and how is it calculated?

A: Profitability ratios: In general, financial ratios are used to evaluate capabilities, profitability,…

Q: How do you evaluate an asset whose value is dependent on future cash flow expectations

A: The Answer :

Q: What is the significance of the FCF (Free Cash Flow) in the area of valuation?

A: Cash flows refer to the cash expenditure and cash receipt of the business over a specific time…

Q: In a theoretical sense, the financial value of any asset is the present value of: Select one: A. Its…

A: Net present value represents the difference in the present value of cash inflow and cash outflow.

Q: Which types of investments are valued at amortized cost? Explain the rationale for this accounting.

A:

Q: What is the initial investment plus interest?

A: The total of initial investment and interest will give the total value or worth of the investment…

Q: How does a firm value an asset?

A: Assets means resources of the business that the business owns. It may be tangible assets or…

Q: What is the relation between the present value of an investment and time and interest rate?

A: The concept of present value of an investment and time and interest rate is an important concept of…

Q: When a fixed asset is sold for less than book value, which one of the following will decrease?

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: How can we invest in two assets with similar return characteristics?

A: An asset is something that provides benefits in the future to its owner. There are two types of…

Q: asset turnover ratio?

A: Asset turnover ratio = Sales/((Total assets at the beginning of the year + Total assets at the end…

Q: Why would an investor apply the Fama-MacBeth Method in asset pricing assumptions?

A: The Fama–MacBeth method in asset pricing is used to estimate different parameters for asset pricing…

Q: Which of the following is an economic motivation for an acquisition? Using a cash surplus. b.…

A: When there is cash surplus and there is a means to park such surplus then acquisition is one option.…

Q: Why is the compressed adjusted present value approachappropriate for situations with a changing…

A: Compresses Adjusted Present Value shows Net Present Value(NPV) of a project after considering the…

Q: explain the unique characteristics of the asset class, their associated risks and potential returns.…

A: The investments can be made using different assets basing on the risk capability and investment…

Q: How can we invest in two assets with dissimilar return characteristics?

A: Diversification is one of the tactics to keep in mind while forming a portfolio. Investing all the…

Q: Why is the fixed asset riskier than current asset?

A: In financial accounting, the company's financial statements assets are classified into two…

Q: . How does one determine the value of any assetwhose value is based on expected future cash flows?

A: If there is an order of anticipated upcoming cash flows, cash flow technique is one of the finest…

Q: Under normal circumstances, will the carrying value of a long-term asset be equal to its market…

A: Assets are recorded at historical figures.

Q: What is the difference between the cost of a fixed asset and its accumulated depreciation called?…

A: Accumulated depreciation is the total of all the depreciation that has been charged to the asset…

Q: How is the value of any asset whose value is based on expected future cash flows determined?

A: Answer: When there is a sequence of expected future cash flows, cash flow method is one of the best…

Q: According to the historical cost principle, assets are always carried at their current market value.…

A: The accounting principles are required so as to record the accounting information in the accounting…