Treasury share should not be classified as a current asset. Select one: True False

Q: Why is the return associated with common stock referred to as a residual claim? Contrast this kind…

A: Common stock holders are the owners of the business. Profits earned by the company will be the…

Q: Investors will pay a premium to invest in risky assets. OA. True OB. False

A: Risk premium is the extra return  that an investor receives for investing in risky assets.

Q: Equity investors expect to be compensated for two things

A: In financial terms, risk can be defined as the possibility that the real profits from an outcome or…

Q: Market risk cannot be eliminated. OA. True OB. False

A: The financial market can be defined as the market place which includes the trading of securities and…

Q: For fi nancial assets classifi ed as trading securities, how are unrealized gains and lossesrefl…

A: Trading securities are debt or equity assets that management expects to aggressively sell for gain…

Q: The capital asset pricing model (CAPM) contends that there is systematic and unsystematic risk for…

A: Introduction : In simple words, capital asset pricing model or CAPM can be understood as a valuation…

Q: Which of the following is False in regards to Share premium account? a. It will be shown under the…

A: THE SHARE PREMIUM ACCOUNT REPRESENTS THE DIFFERENCE BETWEEN THE PAR VALUE OF THE SHARES ISSUED AND…

Q: 1. How are passive investments accounted for under ASPE? a) Cost of amortized cost. b) FVTPL…

A:

Q: some examples of items that would be adjusted directly against equity, rather than being included as…

A: The items included in other comprehensive incomes are not considered under profit or loss account…

Q: O A. Stocks OB. Bonds OC. Mutual funds D. O D. Cash

A: Assets are resources that are controlled which results from prior transactions that are expected to…

Q: Critically discuss the view that preference shares are best described as debt rather than equity.

A: Preference share is type of instrument which can claim higher dividend and They receive fix.…

Q: owners equity are capital, retained earnings and other reservations. True False

A: Owners equity means all amount available for the shareholders of the corporation. It means all the…

Q: Which of the following is not an undistributable reserve?    A. Share premium account     B.…

A: Undistributable reserve means reserves which are not available for distribution to share holders.…

Q: Choose the correct answer:  Equity security acquired for non-trading and the shares are not enough…

A: Solution Concept When there is no significant influence then the investment is financial asset Debt…

Q: TRUE OR FALSE: Assuming an efficient market, two financial securities cannot have the same risk and…

A: The efficient market hypothesis states that information is quickly and accurately reflected in asset…

Q: One of these components is not included in the current asset of an organisation. O A. Short term…

A: Current assets include those assets that a company can convert into cash within a year. Current…

Q: Provide an example of items that would be adjusted directly against equity rather than being…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Market risk ________.   a. is equal to the rate of return generated by a risk-free asset b.…

A: By simple diversification the total risk can be reduced but can not be totally eliminated. The…

Q: The cash flows associated with common stock are more difficult to estimate than those related to…

A: Common stock is the pool of common shares that a company issues

Q: What are the key factors that can lead to an under/overstatement of the investments balance?

A: Answer: There can always be under statement or overstatement of the investment balances.

Q: Off-Balance Sheet Activities do not have a direct impact on the financial stability or risk of a FI.…

A: Off-Balance Sheet Activities  are those assets and liabilites that do not appear on the balance…

Q: Changes in the fair value of the effective portion of a hedging financial instrument are recognized…

A: Financial instruments includes the shares, bonds, futures, stocks, options or any assets which can…

Q: Market risk is portion of a security's stand-alone risk that cannot be eliminated through…

A: Market risk is portion of a security's stand-alone risk is also called as systematic risk.It can not…

Q: The share premium and the revaluation reserve are both revenue related, however the retained…

A: The revenue includes the money that a company generates from its day-to-day business operation. The…

Q: Is unrealized loss deducted in marketable equity securities held as financial asset at fair value…

A: Yes ,unrealized loss reported  as component of other comprehensive income and marketable equity…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Shareholder's equity:   The amount remaining after subtracting company long term and short term…

Q: Systematic risk is diversifiable, so it is an investment's relevant risk. Unsystematic risk is O…

A: Systematic risk, often termed market risk, is the inherent uncertainty associated with the broader…

Q: Which of the below statements is false for equity?  A. Limited liability B.Residual claim on firm…

A: Equity holders are one among the stakeholders of a company. Equity holders or shareholders are the…

Q: AAR is biased in favour of liquid investments. Select one: True O False

A: False.Explanation:Absolute Assignment Ratio (AAR) is a financial metric that gauges the performance…