what do you mean by Accountancy

Q: 4.. Which one of following is not a non-cash item ? (a) Cash Sales (b) Goodwill written off. (c)…

A: Non cash items :  these are the items which does not deal with cash payments.

Q: Users of Financial Statement. how debt is helpful

A: There are three major financial statement of a company. These are profit and loss statement, balance…

Q: What are the primary tools, and how are they used by lenders when determining whether they will lend…

A: The five C's of credit is a system used by lenders to gauge the credit worthiness of potential…

Q: What is accounting?

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Is it in the best interests of the company to borrow money?

A: Introduction: Obtaining finances in debt is significantly more straightforward for companies than…

Q: (1) How does getting a secured loan using accounts receivable as collateral differ from factoring?…

A: Hi student Since there are multiple questions, we will answer only first question. Sales means…

Q: n what way do assets differ from liabilities?

A: Solution: Asset is a resource owned by the business having some economic value with expectation of…

Q: 1. What is the amount of net free assets? 2. What is the estimated loss n asset realization? 3.…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: e traditional 4 C’s of credit analysis, which is the ability of a company to make payments on time?…

A: 4Cs of credit are Collateral, Covenant, Capacity and character.

Q: What are the impacts on your financial statement if you account the transactions not accurately

A: Financial Reporting refers to the recording of the financial transactions of a company for a desired…

Q: When is debt to asset ratio important when raising money

A: Debt to asset ratio is one of the important ratios that we use in finance. This is essentially a…

Q: 1-what are the relations between economics, finance, and accounting? 2-what is the difference…

A: the economics provided a broader picture of the economic environment for making the decisions in…

Q: What is an account receivable? O a. Sales O b. Asset O c. Income O d. Creditors

A: Following is the answer to the given question

Q: effect to asset, liability and owner's equity if the company repays the bank loan

A: Bank loan is the amount borrowed from the bank. Upon repayment of bank loan, the bank loan account…

Q: On a company's financial statements, do you have to list/note if an asset is being used as…

A: Disclosures are additional information which are meaningful and important for the stakeholders to…

Q: deficit

A: If the total asset is smaller than total liabilities and equity on the balance sheet it means a…

Q: do the terms dehit and credit signify increase or decrease or can they signify either ? Explain

A: The effect of debit or credit on an account depends upon the nature of that account. It depends…

Q: Which term is associated with “right” or “right-side”? Debit. Credit.

A: In the T accout format The right side in accounting always represents the credit side of the…

Q: TRUE OR FALSE? The debit balances in suppliers' accounts should be netted against accounts payable.

A: Accounts payable is the amount owed by the business entity towards the suppliers in respect of the…

Q: Which account amount is the most important (larger) in the assets side and in the liabilities side…

A: Balance sheet is the summary of the financial position of the company on a particular date in which…

Q: 1.Describe how the time value of money impacts the terms of a business loan.

A: One of the important decisions which the financial manager has to take is to consider the concept of…

Q: What are financial obligations? How they can be overcome?

A: Liabilities:The claims creditors have over assets or resources of a company are referred to as…

Q: Which of the following statements best describes financial instruments? a. All financial instruments…

A: financial instrument are asset tha can be traded in the financial market. a. finicial asset are not…

Q: 1. Which of the following statements on principles and measurements of accounting in Islamic finance…

A: Islamic  Accounting Islamic accounting refers to the process of accounting based on Shari'ah which…

Q: What is accounts receivable?  Is it something good?  I see these things called current assets and…

A: When the customer purchases the goods or receives the services on credit basis, they are called…

Q: Which of the following items is not classified as an asset?  Accounts receivable Accounts payable…

A: Assets: a. Based on convertibility  :  current assets , Non current assets . b. Based on physical…

Q: Hi why is the net income on the credit side and not debit?

A: Net Income - Net Income is the result of the revenue over expense incurred by the company. It will…

Q: Which of the following would not form part of quick assets? (A)Receivables (B) Cash (C) Prepaid…

A: Quick assets : these are the assets which are easily converted into cash (i.e. into liquid form).…

Q: Which of the following entries is not one a firm would normally make? A)Debit cash, credit accounts…

A: Journal is a book of original entry in which all the financial transactions of the business are…

Q: Why aren’t transactions involving accounts payable considered to be financing activities?

A: Answer: Accounts payable is current liability which is used in computing working capital, excess of…

Q: Which of the following ratios would a lender find most useful in monitoring a porrower's ability to…

A: Analysis of various options: 1) P/E ratio - It is used for measuring the  price of the stock of a…

Q: deposit function, the bank is the _____ and the depositors are the ______ a. drawee - payees b.…

A: Banks do many function for customers and the one of the main function is the deposits made by the…

Q: Why is an owner's valuation of a borrowing business excluded from stated net worth to arrive at…

A: When we  say 'net worth' of a business it is  Assets - Liabilities of business.…

Q: Which of the following is not an asset? a.cash b.inventory c.owner's equity d.investments

A: Assets are those that provide economic benefits and that help to generate cash in the future.

Q: The _____ ratio gives actual losses on loans, while the ______ ratio gives the extent to which the…

A: Bank provide loans to borrowers but given are risk to banks So loans may occur loss to banks.

Q: Identify the relationship between money, credit?

A: Money is considered as the financial medium exchanged between parties that enable the transaction.…

Q: Identify which of the following is not one of the five core principles of money and banking?…

A: The answer of which of the following is not the core principle of money and banking is -

Q: What is accounts receivable?  Is it something good?  I see these things called current assets and…

A: We understand from the question that, we need to give understanding of certain terms in brief. We…

Q: What is the difference between the cash basis and accrual basis of accounting as to the following:…

A: The answer for the theory question on difference between cash basis and accrual basis of Accounting…

Q: is purchashing something on credit an operating activity or a financial activity

A: Assuming that purchase of something as the purchase of inventory.

Q: 1) What would be the gross profit margin and net profit margin? 2) what is the relevance of…

A: The gross profit margin estimates the financial stability of the company.it is the balance left…

Q: What are the use of primary tools, and how are they used by lenders when determining whether they…

A: The primary tools used by the lenders include the 5 C's of credit, which helps the lenders in…

Measuring Your Credit Capacity

Credit capacity means determining one’s ability to manage credit. The credit capacity of the individual or an organization is measured based on the details of the earnings, expenses, and previous debts. Credit capacity valuation is crucially required in obtaining huge debt obligations from a lender such as housing loans, car loans, and business loans.