Exercise 4–7. Admission of a Partner by Investment with Bonus to New Partner Maffy and Luz are partners and their capital balances are as follows: Maffy, P700,000 and Luz, P300,000. They decided to admit Rose as a new partner to increase partnership equity. Rose is to invest P500,000 and be given a 40% interest in the firm. Required: a. Record the admission of Rose in the partnership of Maffy and Luz. b. Compute for the agreed capital of Maffy, Luz and Rose. c. Compute the new profit and loss ratio of the old partners.

Q: Important Factors to Consider When Building a TCO Model Example of a TCO Model?

A: TCO model or Total Cost Ownership Model is an model used to estimate the cost of product or a…

Q: Going beyond just calculating NPV, discuss it qualitatively. What is it used for? Is it a good…

A: Net present value is defined as the difference between the PV of the cash inflows as well as present…

Q: Describe about the DVL methods and what are its advantages?

A: Dollar-value-LIFO: This method shows all the inventory figures at a dollar price rather than units.…

Q: What are some of the advantages of a multi-step approach?

A: An extensive examination of a company's costs and net income is provided by a multi-step income…

Q: What exactly are ESOPs? What are some of its benefits and drawbacks?

A: Introduction: ESOP: Employee stock ownership plan is retirement plans for employees of the company…

Q: Explain Matching Principles?

A: Matching concept is an accounting principle which explains the need to match revenue with the…

Q: How to choose a Benchmark?

A: Investors select a market index (or a mix of indices) as the portfolio's benchmark. An index…

Q: Explain materiality , happens and why these are important? Explain with the help of example.

A: Materiality refers to the concept of determining whether a particular item, transaction, or…

Q: What is Monte Carlo simulation?

A: The question is based on the concept of Monte Carlo simulation, the method is based on  stochastic…

Q: Distinguish between reverse engineering and reengineering.

A:

Q: Describe sensitivity analysis? Give an example?

A: Sensitivity Analysis:The process to evaluate the effect of change in one variable on the end result…

Q: Discuss the following. 1. The Advantages of Linear Programming in Decision Making b. The…

A: Advantages of Linear Programming in Decision Making:Optimal Solutions: Linear programming helps in…

Q: Realization Test Principle/Theory.

A: Accounting is based on some principles, and to maintain uniformity, everyone must follow accounting…

Q: Define the term predictive value.

A: Predictive value refers to the fact that quality financial information can be used to base…

Q: Explain about the Black–Scholes model.

A: Black Scholes option pricing model is probably the most commonly used option pricing model in…

Q: What is Monte Carlo simulation analysis?

A: Answer: Monte Carlo simulation is the methodology used to consider the financial, cost, and project…

Q: What would be the equasion for solving this

A: Formula for calculating yearly payment: Yearly payment=(Loan amount * Rate%)1-1(1+Rate%)n

Q: Explain red herring

A: Red herring It is an introductory prospectus recorded with the Securities and Exchange Commission…

Q: How do you explain or interpret predictive model information?

A: Meaning- Predictive Model As the name suggest, where with the help of historical figures or even…

Q: Can another formula be used to get the answers?

A: Formula  for calculation of share price=Dividend last year*(1+ Growth rate)(Required rate of return-…

Q: When is a New AIS is needed?

A: AIS is accounting information system is a whole information system which provides information about…

Q: can you show formulas used to solve this problem?

A: The concept of the time value of money determines that the worth of money gets depreciated over a…

Q: . What is linear programming? Briefly explain the usefulness of the model.

A: A mathematical optimization technique called linear programming is used to determine the optimal…

Q: What is the actual formula used to get this answer?

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: What are ESOPs? What are some of their advantages anddisadvantages?

A: ESOP: Employee stock ownership plan is retirement plans for employees of the company wherein the…

Q: What is the concept behind the EOQ model?

A: Economic Order Quantity (EOQ) Model: It is a method of inventory costing that aims to identify the…

Q: Explain what is meant by the term decision model.

A: Every business has to take important decisions now and then. A proper understanding of the situation…

Q: d. What is the expected value of perfect information?

A: The expected value of perfect information is the price that a healthcare decision-maker would be…

Q: Contrast the advantages and disadvantages of CASE tools. What should determine whether CASE is used?

A: CASE Tools:   CASE stands for Computer Aided Software Engineering Tools. CASE is used for the…

Q: Write out the equation for the CML and explain its meaning.

A: After the investment in different securities, portfolio is prepared which describe the overall…

Q: Can you explain DCF model?

A: Introduction Discounted cash flows: DCF is abbreviated as discounted cash flows. The concept of…

Q: how to learn CAPM model?

A: In order to increase the return and reduce the risk, investors generally adding some securities to…

Q: What is the Baumol model, and how is it used?

A: The Baumol model, also known as the Baumol-Allais-Tobin (BAT) model, is a cash management model. In…

Q: What is counterbalancing?

A: Errors: The comparability and consistency of the financial statements decreases when a company…

Q: where is the evaluate?

A: There are different type of the evidences that needs to be obtained in order to provide the evidence…