business

Q: What would happen to the standard of living if people lost faith in the safety of financial…

A: Financial institution is the institution which involve the financial activities such as investment,…

Q: As a result of the recent mortgage crisis, many banks reported record losses to their mortgage…

A: 1.

Q: Which of the following statements is incorrect? A bank providing a loan to the entity is not a…

A: D) An entity needs to disclose if it has a common director with another entity because there might…

Q: Which of the following is a reason that banks may favor fee compensation over balance compensation?…

A: In order to increase their deposits and use them for loan, banks usually prefer fee compensation…

Q: If an employee skims sales from a customer, which of the following will likely occur? a. The stolen…

A: Skimming sales is the unethical practice of theft of money from a debtor before the sales have been…

Q: What is adverse selection?  Why does it predict that lenders will prefer to arrange loans through a…

A: The loan is the funds that a borrower takes from the lender at a certain rate of interest for a…

Q: Which of the following is an example of fraudulent financial reporting?

A: The correct answer is: (C) Company management changes inventory count tags and overstates ending…

Q: how does being unethical in the financial industry affect communication with clients?

A: In the financial services industry an agent or the concerned company (which is the financial…

Q: Managers wishing to avoid loan covenant violations may resort to making accounting changes that…

A: It's critical to read the terms and conditions of any loan you're thinking about, paying close…

Q: What dangers are there in misrepresenting the financial performance of your company?

A: The objective of the question is to understand the potential risks and dangers associated with…

Q: Why should you and should not sign a personal guarantee for a business loan?

A: The personal guarantee for a business loan refers to the assurance by the company or a business…

Q: Any time management makes an estimate, there is the risk of earnings management or fraud. Accounting…

A: Earning Management and Bad debts Earning management is the important department in every company. In…

Q: True or False 1. A manager could be held criminally liable for the misdeeds of the company 2. It is…

A:

Q: Could efforts to avoid conflicts of interest lead an investment bank to provide poor service to a…

A: An investment is a financial institution that provides services to the company. Mainly, the clients…

Q: Does the sale of accounts receivable to generate immediate cash harm or mislead anyone?  Would you…

A: Answer: Selling of accounts receivable to generate cash is defined under a process called factoring.…

Q: Which of the following is NOT a client protection principle?   a. Methods that prevent client of…

A: Clients protection principles are very important in financial and loans.

Q: true or false: financial managers should want to slow down disbursements.

A: The financial manager should try to increase the liquidity position of a firm.Hence he should speed…

Q: Banks may deny creditworthy borrowers loan requests if a. they are non-corporate entities b. they…

A: Loan is the money that an entity or an individual can borrow or raise from a bank or any other…

Q: 2. Substantial amount of credit losses is due to poor loan monitoring. In view of this, suggest how…

A: Loan is when the funds are given to some other party in an exchange regarding the repayment of the…

Q: Do you think there are any circumstances when you should go outside the company to report financial…

A: Being the Ethical Professional Practice includes a confidentiality standard requires we should not…

Q: Which type of information asymmetry explains why bad credit risks are more likely to seek bank…

A: Adverse selection, as a rule, alludes to a circumstance where dealers have data that buyers do not…

Q: how do companies account for bad debt? Why would they use an allowance account instead of directly…

A: The bad debt is a charge against the profit. This is recorded in the income statement. The recovery…

Q: you would treat bad debts that top management had removed from Company’s books of Accounts because…

A: Companies sell the goods on credits but credits are risky and some are received and some are not…

Q: One example of moral hazard in finance industry is "insurance policies often decreases incentive to…

A: When one party to a contract participates in reckless action knowing that the other party will pay…

Q: How banks safeguard the deposits of customers from financial losses?

A: The banks safeguard the deposits of customers with the help of an independent agency.

Q: What is the possible result of carelessness in credit and collection policies?

A: IMPORTANCE CREDIT AND COLLECTION POLICIES -   ** every company makes credit sales. ** it is…