Could you give some example that explain thoroughly why capital adequacy management in commercial bank is so important
Q: Held-to-maturity securities O affects other comprehensive income and appear as financing activities…
A:
Q: Aerial Company acquired land containing natural resources on January 1 that it planned to extract…
A: The method of depletion is a kind of accrual accounting that is used for the purpose of allocating…
Q: omputer system to a customer for $500 in PA where the sales tax is 6%. The customer pays cash of…
A: When a sale transaction takes , sale tax is applicable. Sales tax is the tax amount collected by the…
Q: Victory Company uses weighted average process costing. The company has two production processes.…
A: Introduction: Under weighted average method of process costing, all costs incurred on the units till…
Q: budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative…
A: Cash Budget - A cash budget is a strategy for tracking an organization's cash inputs and outflows.…
Q: The Wester Corporation produces three products with the following costs and selling prices:…
A: When there is constraint resource then contribution margin per constraint is the deciding factor.…
Q: Bonita company has a factory machine with a book value of $152,000 and a remaining useful life of…
A: Given that there exists no salvage value of old machine and new Machine
Q: 1.Which depreciation method should a firm choose if it wants to minimize its tax liabilities? a.…
A: Because of use, wear and tear, or obsolescence, the monetary value of an asset will depreciate over…
Q: Assume you want to have $4050 saved in a sinking fund in 1 year. The account pays 3.5% compounded…
A: The amount of money invested over a period of time with the assumption of investment growth at a…
Q: What is the "Depreciation Expense" and "Accumulated Depreciation for 2020 and 2021 under the…
A: Depreciation Expense is the Wear tear Expense of the usage of the Machine for the Purpose of the…
Q: Why profit shows as liability and loss shows as asset?
A: The assets and expenses have the debit normal balance. The liabilities and revenue have credit…
Q: For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation…
A: Journal entry is the procedure for initially documenting commercial transactions in the books of…
Q: Cheng Company reports the following information. Direct labor rate. Non-materials-related overhead…
A: Markup: Difference between the selling price of the product and the cost of the product is called…
Q: The following data were taken from the records of Larkspur Company for the fiscal year ended June…
A: Cost of goods manufactured - Cost of Goods Manufactured is the total cost incurred for manufactured…
Q: oduced by a company with more than one product line. any product involved in a make or buy…
A: Joint product are products jointly produced with other products from one common input. The process…
Q: Brown Company contracts with Sebastian Company to exchange refrigerated trucks. Brown Company will…
A: An exchange is said to have commercial substance if the risk, timing and amount of cash flows…
Q: Please prepare the following joiurnal entries: Show all calcualtions
A: Journal is a book, which is used for the record keeping. Day to day business transactions are…
Q: Henrich is a single taxpayer. In 2022, his taxable income is $491,000. What are his income tax and…
A: Tax rate for single taxpayer is as follows: 10%. $0-$10275 12%. $10276-$41775 22%.…
Q: Morning Sky, Incorporated (MSI), manufactures and sells computer games. The company has several…
A: It is one of the techniques in decision making process that determines the true difference in costs…
Q: Desmond Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 5%…
A: Earnings per share is the per share value earned by the common stockholders of the entity. It is…
Q: 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units?…
A: Cost of ending inventory under absorption costing includes the cost of direct materials, direct…
Q: Chem Manufacturing Company processes direct materials up to the split-off point where two products…
A: To get the gross profit margin, start by deducting direct expenditures or the cost of goods sold…
Q: On the first day of the fiscal year, a company issues an $8,600,000, 11%, five-year bond that pays…
A: The journal entries are the first step of accounting process to record the transactions in the…
Q: Cost of Goods Sold (at standard) $368,000 Direct Labor Efficiency Variance $15,000 F Sales Revenue…
A: Variance arises when the actual cost is different from the budgeted cost. The variance balance is…
Q: Sally Kremer purchased a computer for $9,120 on July 1, 2020. She intends to depreciate it over 4…
A: Assuming cost of asset = 100 % Depreciation per annum under Straight line method = 100%/4 years =…
Q: beyond the rate of general inflation without diminishing market share, due to keen competition in…
A: Introduction Price level change refers to the gradual growth or reduction in the value of money as a…
Q: Direct Labor Cost Budget Ace Racket Company manufactures two types of tennis rackets, the Junior and…
A: First, compute the direct labor hours required in each department. After computing the total direct…
Q: Bonita Company's record of transactions for the month of April was as follows. April 1 (balance on…
A: FIFO method is first in first out method where inventory bought first is sold first. LIFO method is…
Q: onth Number of Appointments Total Cost January 325 $ 5,900 February 375 6,200 March 300 5,650 April…
A: Answer : Variable cost per unit = (Total cost on higher units - Total cost on lower units) / (higher…
Q: repare a flexible selling and administrative expenses budget for October for sales volumes of…
A: A flexible budget is a type of budget that shows the total cost at different production levels. It…
Q: Explain the advantages and disadvantages of using ratio analysis to provide guidance to investors…
A: Ratio analysis is a quantitative analysis of data enclosed in an enterprise’s financial statements.…
Q: Analyzing the Statement of Cash Flows Information for Ditka Inc. and McMahon Company is given below:…
A: Compute free cash flow as given below: For Ditka Inc.: Free cash flow = Net cash flow from operating…
Q: The following expenditures and receipts are related to land, land improvements, and buildings…
A: Capital Expenditure:— It is the amount spend on assets for long term benefits. Capital Receipt :—…
Q: Grace Co. can further process Product B to produce Product C. Product B is currently selling for $22…
A: Differential Revenue is difference between Alternative 1 and Alternative 2 Revenue Selling price of…
Q: Recording transactions, using four-column accounts, posting, and preparing a trial balance 3 Van…
A: Journal Entries -Journal Entries are used to record transactions entered into by the company. It is…
Q: Problem 8 During 2021, Yong Corp. had 1,000,000 ordinary shares issued and outstanding. An agreement…
A: 1.Determination of Earning per share Particulars First quarter second quarter third quarter…
Q: Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under…
A: In traditional philosophy we have two types of time namely: Value added time : Time taken to…
Q: The following information is available concerning Nunan Corporation’s sinking fund: 2019 Jan. 1…
A: INTRODUCTION: A journal entry is often made in the general ledger, but it can alternatively be…
Q: -S Garcia Company has 10,500 units of its product that were produced at a cost of $157,500. The…
A: SCRAP ANALYSIS Under Scrap Analysis Net Consideration is Treated as net Income. No Any Cost Shall…
Q: Kindly answer all questions: 1.) Cost behavior is considered linear whenever a straight line is a…
A: Introduction:- Cost behavior denotes how a cost will change in total when there is a change in…
Q: Wildhorse Company is a multiproduct firm. Presented below is information concerning one of its…
A:
Q: Notes and Accounts Receivable that result from sales transactions are sometimes called Trade…
A: Answer : False
Q: Required: Prepare the relevant income statement and statement of financial position extracts.
A: Partnership is a form of Business Entity under which two or more partners agreed to work together…
Q: During 2021, WMC Corporation discovered that its ending Inventories reported on Its financial…
A: The total sum of a company's income that is set aside for reinvestment rather than being paid out as…
Q: On December 31, 2022, the following information were taken from the trial balances of ABC Company…
A: Explanation: Trial Balance is a financial report that shows the account balances of the company's…
Q: In a sell or process further decision, consider the following costs: 1. A variable production cost…
A: There are many cost that need to be considered while considering the decision things regarding the…
Q: Problem 11 Digimon Company owned three properties which are classified as investment properties.…
A: An asset can be recorded as per cost model or fair value model. Under cost model assets are recorded…
Q: The financial statements of International Foods for the
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: Product X-547 is one of the joint products in a joint manufacturing process. Management is…
A: Introduction:- Relevant costs' can be defined as any cost relevant to a decision making. The…
Q: If after paying debts and expenses, the estate principal is not adequate to satisfy the various…
A: When there aren't enough shares to divide among a will's heirs, the real estate property is said to…
Could you give some example that explain thoroughly why capital adequacy management in commercial bank is so important?
Step by step
Solved in 2 steps
- Write methodology of impact of intellectual capital on the performance of SMEs/banks?Identify the waysin which banks canmanage their assetsand liabilities to maximize profitExplain the concept of “Value-at-Risk” (VAR) in the context of banks’ credit risk management. How is VAR linked to regulatory capital requirements?
- Explain how commercial bank mange it balance sheet to maximize its profit without affecting the liquidity.b) Why is the risk-adjusted return on capital (RAROC) an important tool in credit risk management for commercial banks?What are some other investment banking activities?How did these increase investment banks’ risk?