what is the return asset that is used in financial statement analysis?

Q: Does the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measureof…

A:

Q: Explain what is the risk component of financial assets.

A: Risk can be described as the likelihood of an unexpected or negative outcome. Any act or activity…

Q: What is the relationship between total liabilities and total assets? What is it called?

A: Assets:   An asset is any form of resource both tangible and intangible owned by an organization for…

Q: What is the calculation for return on assets (ROA)? Explain what ROA measures?

A: ROA is the abbreviation used for Return on Assets. It a common accounting term and this is usually…

Q: Why does financial planning usually equated with projections?

A: Financial planning is a stage process way of accomplishing individual's lifestyle goals. A financial…

Q: What purposes are served by a comparative study of financial statements?

A: Purposes served by comparative financial statements:Comparative financial statements analysis the…

Q: What are the Return on Total Assets?

A: Return on total assets: Return on total assets (ROTA) is a ratio that calculates a corporation's…

Q: What assets are viewed as current financial resources?

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Q: What are some common red flags in financial statement analysis?

A: Red flags are the situation that persists where stocks are potentially insecure or undesirable.

Q: Define the term financial statements?

A: Financial Statements: When the accounting period ends, there is a need to report and communicate the…

Q: compare financial assets and marketable investments

A: A financial asset is a monetary asset with a statutory right or possession assertion as its source…

Q: What is financial analysis?

A: The question is based on the concept of financial decision making. Financial analysis are the set of…

Q: What are assets in finance?

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: What assumption is made regarding the external users of financial statements?

A: Financial Statements: The organization records the financial information related to transactions.…

Q: What does the rate of return on total assets measure, and how is it calculated?

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Q: What are investment assets ?

A: Investment Assets: Investment assets are termed as tangible or intangible things that are acquired…

Q: Explain how the cost of capital may be used as a screening tool when applying the net present value…

A: Net present value: Net present value is a the increment return from an investment after covering the…

Q: What are the characteristics of financial instruments

A: Financial instruments are financial assets which can be traded in the financial market. Financial…

Q: Describe Common methods for analyzing financial statements.

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: WHAT IS THE PURPOSE OF FINANCIAL STATEMENT?

A: Financial statement - are prepared by the management  of a company to convey the performance of the…

Q: What is Trend Analysis in Financial Analysis?

A: Trend analysis: A trend analysis is determined by comparing the change or percentage change, which…

Q: Define the term a statement of financial position?

A: International Financial Reporting Standards:   IFRS (International Financial Reporting Standards) is…

Q: What is a financial instrument?

A: Introduction: A financial instrument is a physical or computer-generated document showing a legal…

Q: What is the accounting rate of return?

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Q: What is financial reporting environment?

A: A short introduction to Financial Reporting- Basically it is a standard accounting practice that…

Q: Explain what are the elements of financial statements?

A: The elements of financial statements are as follows: Assets Liabilities, Equity, Revenues and…

Q: financial statement analysis

A: Financial statement analysis deals with the analysis of the core financial statements of a company…

Q: What are the most commonly used techniques in the analysis and interpretation of financial…

A: The term financial statements represent financial reports prepared by companies in order to convey…

Q: how was capital asset pricing model (CAPM) created? GIVE reference

A: Meaning CAPM Capital asset pricing model, It is created to explain the investor that he/she will get…

Q: What does mean "Marketable securities" in the current asset of a balance sheet?

A: Current Assets are those assets from which the organization can derive economic benefits within one…

Q: What is the limitation of Financial Statement Analysis

A: Financial statement analysis is the process of analyzing and evaluating the corporate entity's…

Q: What is the most important financial statement?

A: Financial statements: These refer to the formal or official records of the activities of the…

Q: Critically discuss the phases of the financial statement analysis framework.

A: Introduction:   The financial statement analysis framework refers to the process of evaluating…

Q: How is the CAPM (Capital Asset Pricing Model) related to valuation?

A: The relationship between systematic risk and expected return on assets, particularly equities, is…

Q: What do the Asset management ratios measure?

A: Asset management (turn over) ratios compare an organization's assets with its turnover. Asset…

Q: What is the relationship between current assets and currentliabilities?

A: Current assets: The assets which could be converted into cash within one year like accounts…

Q: Define the term Return on Total Assets? What does it measure?

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Q: WHAT ARE THE IMPORTANCE OF FINANCIAL STATEMENTS?

A: Financial Statements are the Statements which records the activities of the business and depicts the…

Q: how would you value the assets, liabilites and equity and stock values ?

A: Assets valuation is the way of  deciding the reasonable market or present estimation of resources,…

Flow of Funds

The flow of funds is the financial accounts of the nation, which monitor and control the cash flow among various sectors or industries, or markets. Central banks use these flow of funds statements to acquire macroeconomic data, to publish cash inflow and cash outflow statements of the nation. This flow of funds system is utilized to identify economic activity and changes in the economy. It is used by Federal Reserve to determine the Gross Domestic Product (GDP) of the nation and to implement monetary policy and fiscal policies.