When calculating a client’s net worth always use the sentiment value of each asset and the full, or outstanding, balance due for each liability.   A. True   B. False

Q: When income is to be recognized on cash basis. by Safe Trust Bank, a distinction should be made…

A: In case of performing assets, the income should be recognised in accrual basis.  However, in case of…

Q: The valuation of a promise to receive cash in the future at present valueon the financial statements…

A: Financial accounting involves various accounting principles, concepts, and assumptions for preparing…

Q: Describe term net asset value (NAV)?

A: Net asset value (NAV): It describes an entity's net worth, which is measured as the complete value…

Q: Which one of the following methods is based on net profit rather than cash flows? a. net present…

A: We use capital budgeting to determine if a project is financially viable or not. We accept viable…

Q: xplain goodwill impact on balance sheet, cashflow or income statement???? With examples

A: On a corporation's balance sheet, "goodwill" symbolizes the value that the firm got when it…

Q: Rr.22. Which of the following is an example of a "quick asset" for purposes of applying the…

A: Quick ratio :— It is calculated by dividing quick assets by current liabilities.    Quick assets :—…

Q: Liquidity is simply: a. another term for current liabilities O b. another term for cash O c. a…

A: Definition: Liquidity means how quickly you can get your hands on your cash. In simpler terms,…

Q: Define each of the following terms:f. Accounting profit; net cash flow; NOPAT; free cash flow;…

A: Accounting profit is the net profit of a firm after deducting a company’s revenue from its expenses.…

Q: Nominal values are measured in ________ and real values take account of

A: Given  Nominal values are measured ? Real values taken account of?

Q: What is “fair value”? Consider whether it is really helpfulwhen reporting financial results. Give…

A: Fixed assets: These include all the assets that are of tangible nature and have an expected useful…

Q: Which of the following is an External sources of finance? a. Depreciation funds b. Retained…

A: Two sources of finance Internal and external

Q: Capital account transactions are not affected by Select one: a. Investment diversification

A: Balance sheet is the representation of financial position of the company tha includes the assets,…

Q: The process of accumulating interest on both principal and interest earned is called ________.…

A: Borrowing is a loan taken from a bank or any other party and the amount of the original loan or…

Q: Traditional approach to financial management is how the funds can be utilised efectively. Select…

A: False

Q: What are the benefits of pro forma financial statements?

A: Pro forma financial statement:Pro forma financial statements is a report which are prepared on the…

Q: excess earnings method, capitalized earnings approach, and discounted future earnings approach which…

A: ADJUSTED NET ASSETS METHODThe difference between the fair market value of the business assets and…

Q: /hich of the following statements is false? O a. Assets must always equal the sum of liabilities and…

A: Assets can be classified as current assets or long term assets and represented in the balance sheet.

Q: Which one of the following is not a type of measure used in the Balance scorecard?

A: The business organizations has employees in their various departments and on different level…

Q: How is the impact of uncertainty reflected in a discounted cash flow (DCF) analysis?a) Debt/equity…

A: The objective of the question is to identify how uncertainty is reflected in a discounted cash flow…

Q: True/false   Under IFRS, the discount rate should reflect risks for which future cash flow…

A: False  Refer step 2 for explanation

Q: What accounts in the statement of financial position are taken into consideration to calculate the…

A: The interest and other charges incurred by the Company while borrowing cash are referred to as the…

Q: Which of the following is an approach to value? Pick the best answer. Question 1 Select one: a.…

A: Valuation is the process of determining the true fair or intrinsic value of the share of a company…

Q: Short-term investment and long-term investment will be recorded in what type of financial statement…

A: Balance sheet refers to the one of the financial statement of a company which reflects the overall…

Q: financial assertion

A: Financial assertions are statements made by management in an an assertive way regarding the items in…

Q: The most accurate way to analyze the profitability of an investment is to compute the payback…

A: Payback period is the period for time taken of project to repay the initial investment. Payback…

Q: explain silent feartures of these three methods. Asset Based Valuation, Earning Based Valuation…

A: An asset-based valuation is a form of valuation in business that focuses on the value of a company's…

Q: What are the advantages of matching the maturities of assets and liabilities? What are the…

A: Matching the maturities of assets and liabilities refers to matching the similar category of assets…

Q: Which of the following returns is consistent with contractual cash flows that are solely payments of…

A: IFRS 9 provides guidance of SPPI. The SSPI test decides that whether financial instruments are…

Q: The internal rate of return method provides a rate of return that approximates:   Both the…

A: The internal rate of return shows the estimated rate of growth in a year from the particular…

Q: Investors' reliance on income and cash flow statements

A: Cash flow statement is a statement of cash rceipts and cash payments. There are three activities in…

Q: Establish a compensatory equilibrium. In financial statements, how are compensating balances…

A: Here is the Answer

Q: Explain the fundamental equivalence of valuation based on expected future dividends free cash flows…

A: Introduction: The valuation for dividends, cash flows & earnings generally vary in their own…

Q: Describe the Principle of Investing in Financial Assets?

A: The financial assets are those assets which are not having a physical existence like stocks, fixed…

Q: Financial liabilities deliver cash. True False

A: Financial liabilities refer to the obligations or debts that a company or individual owes to…

Q: Which one of the following methods of analysis is most appropriate to use when two investments are…

A: Capital budgeting techniques such as internal rate of return, net present value method, average…

Q: The means by which individuals hold their claims on real assets in a well-developed economy are A)…

A: A financial asset is a liquid asset which, from either a legal right or ownership assertion,…

Q: only interested in measuring cash flows when they actually occur, not when they accrue as an…

A: the company makes an investment in the project an individual make investment in various types of…

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.