What is GAAP and how does it work

Q: how about the solution of part D?

A: Here, Beta of stock = 1.35 Beta of risk-free asset = 0 Expected return of stock = 16% Risk-free…

Q: What is the difference between ER and REA model

A: ER model stands for Entity Relationship model which is a high-level data model. This model defines…

Q: What exactly are ESOPs? What are some of its benefits and drawbacks?

A: Introduction: ESOP: Employee stock ownership plan is retirement plans for employees of the company…

Q: What is t

A: Liabilities are accumulated financial obligations that result from past events that are expected to…

Q: What is FASB and where does it get its power?

A: FASB:  FASB is also called a Financial accounting standards board setup to provide standards and…

Q: What is IFRS?

A: In accounting and financial reporting there is need of international rules and regulations to create…

Q: What is WACC

A: Weighted average cost of capital(WACC) is the average cost of several source of financing. It is…

Q: How much of FTB?

A: Answer:

Q: What is a constraint?

A: Internal Control:   It refers to a set of rules, policies adopted by a business to ensure accuracy…

Q: What are the advantages and disadvantages of  LIFO?

A: Last-in-First-Out: In Last-in-First Out method, the costs of last purchased items are considered as…

Q: What’s the AMT, and what is its purpose?

A: The main purpose of AMT is to set a limitation on the tax payers who may be making use of the excess…

Q: What are the key assumptions of the CAPM?

A: Introduction: The CAPM is an equilibrium model that stipulates the relationship between necessary…

Q: What is materiality? Explain?

A: Materiality: The accounting concept which focusses that all the financial items and figures which…

Q: What is the value of Po?

A: Annuity is referred to a cash payment being made at regular intervals. It is a widely used concept…

Q: What is the decision rule for NPV?

A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…

Q: What is GAAP and why it is needed?

A: GAAP - Generally Accepted Accounting Principles

Q: what is the purpose of the conceptual framework?

A: The conceptual framework is comprised of six Financial Accounting Concepts statements that serve as…

Q: What is GAAP?

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Q: what is AJEs?

A: AJEs stands for Adjusting journal entries.

Q: What are the sources of pressure that change and influence the development of GAAP?

A: Generally Accepted Accounting Principles (GAAP): A set of accounting principles, practices and…

Q: How is materiality concept applied?

A: Accounting principles:

Q: what goes where?

A: Let us recall 3 golden rules of accounting: Debit the expense, credit the income. Debit what comes…

Q: What is the EBIT?

A: The income generated by a business in the course of normal operations, after deducting the direct…

Q: What is the Baumol model, and how is it used?

A: The Baumol model, also known as the Baumol-Allais-Tobin (BAT) model, is a cash management model. In…

Q: What is sensitive analysis?

A: Sensitive analysis is a method for predicting the outcome of a decision if a situation turns…

Q: What is ESG reporting and why does it matter?

A: Transparency on ecological and socially responsible actions is becoming more popular. Environmental,…

Q: What is the answer of this with solution and explanation.

A: The question is related to adjusting Entires as om 31st December 2018.The details regarding the…

Q: What is the difference between the CML and the SML?

A: The term CML refers to capital market line. Whereas the term SML refers to security market line.

Q: What is the answer ?

A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…

Q: what is materiality?

A: Materiality is an accounting concept that signifies the importance of an item to users of financial…

Q: What are the benefits and drawbacks of FIFO?

A: Introduction: First-in-First-Out:  In First-in-First-Out method, the costs of the initially…

Q: How suboptimization can occur?

A: Sub-optimisation:   It refers to the level of output that can arise from any inefficient or…

Q: What is the decision rule for ARR?

A: Accounting rate of return refers to rate of profit earned on an investment. The ARR is computed by…

Q: What should you do? What is the YTM of the

A: The yield to maturity on a bond is the yearly annual rate of interest earned if the bond is held…

Q: What does RI measure?

A: Residual Income: Residual income is the income earn over the minimum rate return of the company. In…

Q: How can thepayback method be useful?

A: Meaning:   The payback period is the time required to earn back the amount invested in a…

Q: What is OLTP and OLAP? How are they different?

A: OLAP stands for Online Analytical Processing which helps in analyzing different business elements…

Q: What is the CAPM? What does it tell you?

A: Capital asset pricing model (CAPM) is a model or method which is used by the company to define the…

Q: What is notional value?

A: Notional value is used to value the underlying asset. In simple words it tells how much of value a…

Q: What is the AP/CD process?

A: Accounts payable indicate the obligation of the organization resulted from past transactions or…

Q: 1. What are externalities?

A: Comment-  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: What is COSO? What is the PCAOB?  Why are they important?

A: Committee of Sponsoring Organizations of the Tread way Commission (COSO) is an organization formed…