Assets Market Rates Value Cash $150 Loans $675 T-Bonds $175 Total $1,000 10% 5% Duration Liabilities Market Rate (Years) And Value Equity Time Deposits CDs Equity 2.50 5.00 $500 $400 $100 $1,000 4% 6% Duration (Years) 1.25 3.00

Q: What is Unit-Profit or Unit-Cost Calculation?

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: What is meant by the term gross margin?

A: Margin means the percentage of base figure used to represent any amount in the form of percent.

Q: What is the quantitative disclosure of lessee?

A: Lease Agreement:   It is a contract between the owner of the asset (lessor) and the person who uses…

Q: What are two ways to calculate returns for a holding period?

A: It is also called as HPR, which states to the total returns during a period for which a investment…

Q: normal balance of asset, liability, and equilt

A: The balance sheet shows the financial position of the company that including the assets,…

Q: What does the concept of cost of equipment includes? Describe in detail.

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

Q: name for the amount

A:

Q: Explain Computing Holding Period Returns?

A: Introduction: Holding period returns (HPRs): Holding period return (HPR) is one of the investment…

Q: Define each of the following terms:d. Flotation cost, F

A: Primary market is the place where company sells or offers new equity shares to the investors. New…

Q: What is the lnventory·turnover ratio?

A: Inventory turnover ratio: Inventory turnover ratio indicates how many times a corporation has sold…

Q: Describe the account analysis method for estimating a cost function.

A: Definition:   Account Analysis Method: The account analysis method of estimating a cost function…

Q: give the definition, recognition, measurement and derecognition of "borrowing cost"

A: A uniform group of principles, standards, and procedures that explain the basic financial accounting…

Q: What is the revenue project?

A: Revenue refers to the income generated by the company by performing certain operations or business…

Q: Which different terms are used to refer to rate of return?

A: Rate of return is the return that is expected by the investors from the investment made. It is…

Q: What is moderate policy (current assets)?

A: Moderate policy is the policy which makes the balance between restricted and relaxed policies. It is…

Q: What is the quantitative disclosure of lessor?

A: Definition: Lease: Lease is a contractual agreement whereby the right to use an asset for a…

Q: what is weighted average cost method?

A: The weighted average cost method is one of the methods to ascertain the unit cost of a product. It…

Q: Define a comparative balance sheet?

A: A comparative balance sheet presents the information about the Assets, liabilities and Equity side…

Q: What is the purpose of Classifying Costs for Financial Statement?

A: Cost Classifications helps the management in analysing the overall effect on the assets and…

Q: Define current operation income?

A: Current operation income otherwise called as operating income.Operating Income: Operating income is…

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: Discuss the different types of income

A: Income can be described as the money or value received for the sale of goods or provision of…

Q: What is function of expense method?

A: Organisations can opt for either of the options to prepare and report the income statement. They are…

Q: What is the carryover amount?

A: Introduction Capital losses may be defined as the decrease in the value of capital assets of the…

Q: What is the difference between a PL and a balance sheet?

A: Balance sheet records the assets and liabilities of the firm at a point in time. P&L account or…

Q: What does the Unit contribution margin express?

A: Break Even Point:                 Break Even Point is defined as the level where there is no profit…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.