Give me answer of this question A purchase commitment represents a What?a) A firm order to buyb) A contingent assetc) A sale on creditd) An option to purchase

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Answered: A purchase commitment represents a…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter14: Intercorporate Investments In Common Stock

Section: Chapter Questions

Problem 4Q

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A derivative is a financial instrument whose value is determined by _____________________. (Select two that apply) Select one or more: a. An underlying asset b. The features of the derivative itself c. Speculation d. A regulatory body such as the FTC
Which best defines Market Value? Group of answer choices: Whatever the market will bear. Most probable selling price, assuming “normal” sale conditions What an investor is willing to pay for a property. The appraised value.
In an accretion/dilution analysis of an acquisition, if the purchase price exceeds the book value of the target’s assets, discuss the key components of the balance sheet that will be adjusted on the pro forma financials.
Collateral may mean the acquisition of rights over either assets belonging to a borrower and/or the acquisition of rights against third parties. a. True b. False
What is the concept of sale-leaseback agreement?
An option to buy the asset is referred to as a _______, while an asset to sell the asset is called a _______. Group of answer choices B. Put, Call D. Call, Short A. Short, Put C. Call, Put
Compare the way a purchase option that is reasonably certain to be exercised and a lessee-guaranteed residual value are treated by the lessee and lessor when determining lease payments.
The best evidence of fair value for an investment property is price in a binding sale agreement fair value determined on the basis of observable data current price in an active market. management’s estimate of future cash flows multiplied by a discount rate
The notional amount of a derivative instrument is a. related to the number of units specified in the derivative and the price that relates to the asset or liability underlying the derivative. b. the change in the price or rate that relates to the asset or liability underlying the derivative. c. the price or rate that relates to the asset or liability underlying the derivative. d. the number of units that is specified in the derivative instrument.
A sale and leaseback arrangement does which one of the following? Select one: O a. allows the lessor to continue using the leased asset without any interruptions O b. provides the lessee with an immediate cash inflow equivalent to the initial lease payment O c. allows the lessee to generate cash while continuing to have use of the asset O d. provides the lessor with an immediate cash inflow equivalent to the market value of the leased asset O e. allows the lessee to retain title of the asset
explain the make or buy decision process and describe how to perform the financial calculation in the simple lease or buy example provide in this chapter.

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A purchase commitment represents a What? a) A firm order to buy b) A contingent asset c) A sale on credit d) An option to purchase