Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy?  Monetary unit assumption. Periodicity assumption. Going-concern assumption.   Economic entity assumption.

Q: Another implication of fiscal deficit is

A: Following is the answer to the question

Q: :-What are two estimates that impact the Amount of reported income significantly c How? When…

A: 1) Income statement is one of the three Financial statement on that stakeholder rely on . For…

Q: Discuss the argument that central banks should have a mandate for price  stability to prevent an…

A: The central bank is the banker's bank. It gives advice to the government Central bank assists in…

Q: a) What is the purpose of internal earnings targets? (b) What is the risk associated with internal…

A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Central Banks are in fact not at fault when it comes to turning economy into recession and…

A: Each country has its own central bank and a country’s central bank has the power to control that…

Q: The concept that market forces in the macroeconomy can remedy a recession is referred to as:…

A: Monetary Policy- Monetary policy refers to the actions and communications of the central bank in…

Q: Short run vs. Long Run a.Why on the long run, fiscal and monetary policies are not effective?

A: Short Run: This refers to the factor of production where capital is fixed. The time period in such a…

Q: The gain or loss on the net monetary position in a hyperinflationary economy shall be included in:…

A: This question is answered according to IAS 29 "Financial Reporting in Hyperinflationary Economies"

Q: Describe monetary policy and its function to the financial system

A: Monetary policy is reflective of policy of Central bank in order to control the level of money flow…

Q: The stable dollar assumption assumes that:     the monetary unit is the functional currency of any…

A: Under the stable dollar assumption, it is assumed that the definition of the dollar will remain…

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 the concept of present value? How does it affect inflation

A: Increase in general price levels in an economy is known as inflation. Due to inflation, the cost of…

Q: Which of the following is not one of the pillars of Macroeconomic policies of the Government? a.…

A: Answer The key pillars of macroeconomic policy are: fiscal policy, monetary policy and exchange rate…

Q: Accrual accounting requires estimates of future outcomes. For example, the reserve for bad debts is…

A: Financial Statements These are a company's financial activities and position in a nutshell. The data…

Q: The actors of the monetary policy process includes the central bank, commercial banks, depositors,…

A: Monetary Policy: Monetary policy refers to the process of controlling the amount of money that is…

Q: Explain the context of monetary policy : financial stability? Example?

A: Monetary policies are actions taken to affect the economy of a country. Monetary policy basic motive…

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: Financial Crises have Adverse effects on the Economies. Write a Comprehensive Note on the causes and…

A: Financial crisis is defined as wide variety of the situation, which has the financial assets by…

Q: 6. A multifactorial phenomenon that manifests itself in the growth of the General level of prices…

A: The macroeconomic concepts are considered to be the important factors of the economy wherein the…

Q: What are two monetary policies that could be implemented by the central bank which would have the…

A: Federal bank achieve of economic growth by monetary policy by increasing or decreasing money supply.

Q: Are the following statements true or false, according to IAS1 Presentation of Financial Statements?…

A: Lets discuss IAS 1 here. As per IAS 1 deals with the presentation of the financial statement. It…

Q: Why would government usually default first to monetary policy for stabilization before using fiscal…

A: Monetary policy - It is concerned with the monetary system of a country. Monetary policy is the…

Q: credibillity of monetary policies

A: Monetary policy is a policy formulated by the central bank of a country. It stabilizes the supply of…

Q: Inflation targeting refers to conducting ________ policy so as to commit the central bank to…

A: Inflation targeting is a monetary system where the Federal Reserve establishes as its objective a…

Q: REQUIRED: ANSWER THE FOLLOWING QUESTIONS IN POINT FORM • What is the difference between book value…

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

Q: Which method should be used if management anticipates a periodof inflation? Why?

A: Inflation is a term that refers to increase in prices of commodities and services while purchasing…

Q: Define exposure, differentiating between accounting and economic exposure. What role does inflation…

A: Exposure means uncontrollable future events which can affect adversely. In the mechanism of exchange…

Q: Which of the following statement about inflation is incorrect a. A positive inflation rate reduces…

A: Inflation is very important factors in time value of money and have impact on the real rate…

Q: what role primary financial markets play in the current economy? What role do secondary markets…

A: The primary market is the place where the company issued the securities to the general public. The…

Q: What is the difference between future value and present value? Which approach is generally preferred…

A: Present value and future value are considered while taking investment decisions. The future values…

Q: Give an example of a strength and a weakness of the accounting rate of return approach.

A: ARR stands for accounting rate of return, is a formula which computes the desired rate of return in…

Q: Which are functions of financial markets? Check all that apply: O Maturity intermediation Risk…

A: Financial markets are important in the economy of country and they play very bigger role in the…

Q: What is the basic accounting problem created by the monetary unit assumption when there is…

A: The basic accounting problem created by the monetary unit assumption when there is significant…

Q: hat are the tools of monetary policy?

A: The monetary policy is the policy that is adopted by the central banks or the monetary authorities…

Q: Evaluate and summarize some monetary policies which will affect a particular type of financial…

A: Monetary policies refer to those economic actions which are taken by the central bank of a country…

Q: Which of these is NOT a monetary policy tool?*         A. Discount rate       B. Open market…

A: Monetary policy is made by the central bank of the country so that there will be stable economic…

Q: The focus of the short-run macro model is on the role of   a. spending in explaining economic…

A: In the short-run macro model, in short-run income depends on spendings and spending depends on…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.