e amortized cost for a financial asset

Q: The difference between book value of the asset with the proceeds receive from its sale, with result…

A: Assets:   It refers to the economic value of all resources owned by the business at a given point in…

Q: If the salaries are recorded in the accounts of the partnership as an expense rather than treated as…

A: If in the case salaries of partners recorded as an expense instead of treating as allocation of…

Q: Define risk-adjusted cost of capital (r)

A: Risk adjusted cost of capital is the measure of returns of a project relative to the risks of a…

Q: Utility expense

A: Energy, water, and trash disposal are all utilities that are used in the home or business and incur…

Q: Define Asset turnover.

A: Ratio analysis  It is the financial analysis tool for measuring the profitability, liquidity,…

Q: Explain the effect of issuance cost on firm value.

A: There are issues cost associated with debt and equity that has impact on  value of firm.

Q: What is an accrued expense? Provide an example.

A: Accrued expense: This is the expense incurred but not yet paid. It is treated as liability until the…

Q: Define capital requirement ratio (CR)

A: Answer: Capital requirements are nothing but regulatory guidelines for banks that specify the amount…

Q: What is the meaning of capital costs, how are they described, and how are they different from…

A: Capital costs are one-time expenses for the creation, improvement, or purchase of assets like…

Q: Explain the meaning and composition of the "return" of a financial investment

A: Financial Investment Funds invested for the purpose of earning returns over a specified period of…

Q: Explain what is capital or capital financing? Examples

A: capital financing is the form of business finance that is raised through equity funds and lenders…

Q: Explain the assumptions of Capital Asset Pricing Model

A: It is providing the relationship between the expected rate of return and the systematic risk of the…

Q: Define the term net advantage to leasing (NAL).

A: NAL It is the money that an entity or an individual saves from taking an asset on lease instead of…

Q: Define asset management ratios

A: Asset management ratio: It ascertains the estimation of the sales or revenues of an organization…

Q: Question. What are Operating and non-operating expence?

A: Expenses refer to the outflow of money for the payment of any product or service used in the course…

Q: What is the relationship between depreciation and net income?

A: Depreciation is the part of cost of a asset which is charged to income statement yearly as a expense…

Q: Explain how to determine the cost of an asset.

A:

Q: Define the term Paid-in capital?

A: Stockholders’ equity: Stockholders’ equity is referred to as the claims of the stockholders on the…

Q: What are the economic benefits of leasing vs ownership of assets?

A: MEANING:- Leasing of Assets - The leasing of assets refers when the owner gives the right to use…

Q: Derivation of capital asset pricing model

A: The Capital Asset Pricing Model (CAPM) relates the returns on individual assets or entire portfolios…

Q: Why is profit shown on liabilities side?

A: This is because of separate entity principle of accounting which says that the owner and business…

Q: Define current operation income?

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

Q: Explain the accounting for gain and loss ­contingencies.

A: Contingencies:   Contingency is a situation where the outcome becomes uncertain and is resolved in…

Q: Define Realizable (settlement) value

A: Realizable settlement value in case of liabilities is considered to be equal to the settlement…

Q: When does the Capital expenditures occur?

A: Capital expenditure is the money spent by business on acquiring fixed assets like land, building…