Use the docmposed ROE framework to provide possible reasons for this difference based on the figure on the table below:

Q: Depreciation Inflation Taxation

A: Definition of each of these financial terms along with an example each are provided below:

Q: Matching terms Match each term to the correct definition.

A:

Q: Discuss any two limitations of  Ratio analysis.

A: Limitations of ratio analysis:Ratios are mostly computed based on historical costs as a result;…

Q: Problem 2 Bella Company had an overdue 8% note payable to Marimar Bank at Php8,000,000 with acrrued…

A: Journal entry is the practice of recording financial activity for the first time in the books of…

Q: Can you please step this out line by line (not all in one line) and state the formula used

A: The concept of time value of money states that worth of money changes with passage of time. This is…

Q: Explain how the retrospective approach offers consistency and comparability.

A: Retrospective approach is the principle in which previously issued financial statements are recasted…

Q: difference between ABC method and traditional method

A: Solution:- The following differences between ABC method and traditional method as follows under:-

Q: Write the two types of compounding situations?

A: Interest is characterized as the getting cash cost, as on account of premium charged on equalization…

Q: The following are independent situations: a) White Ltd, a supplier of sailing equipment, was…

A: SOLUTION- IFRS 10 - IT ESTABLISHES TO PRINCIPLE FOR PRESENTING AND PREPARING CONSOLIDATED FINANCIAL…

Q: ifference between ABC method and conventional method

A: Solution:- The following differences between ABC method and conventional method (Traditional method)…

Q: Briefly explain the concepts of temporary difference and permanent difference

A:

Q: What are the differences among the three forms of the EMH?

A: EMH refers to efficient market hypothesis.  The differences among the three forms of the EMH are:

Q: Explain the purpose of IFRS for SMEs and how it differs from full IFRS.

A: IFRS or International Financial Reporting Standards are the guidelines of accounting given by the…

Q: Explain how the extended, or modified, DuPont equation can beused to reveal the basic determinants…

A: DuPont analysis is used to decompose the drives of return on equity.  The return on equity is one of…

Q: Masay Company provided the following information for the Problem 9-2 (IAA) current year: Sales…

A: preparation of income statement are as follows

Q: You own an old "water skiing" motor boat that is a real gas guzzler. It is 10-years old and can be…

A: Net Present Value- The present value of the future cash in-flows less the present value of future…

Q: Would you say this chart  is a technical or a fundamental analysis? Give reasons for your  answer?

A: The question is based on the concept of analysis of stock performance. Fundamental and technical…

Q: Does the IRR analysis yield the results consistent with PW and other equivalence methods?

A: Yes, the IRR analysis gives the results consistent with PW analysis and Equivalence methods.

Q: For practical applicationsas opposed to theoretical considerations, which ismore relevant, the CML…

A: Security market line (SML) or Capital market line (CML): The capital market line appears the…

Q: List several potential problems with ratio analysis.

A: Ratio analysis is a correlation of details in an organization's financial reports. It is utilized to…

Q: describe the steps in the fi nancial statement analysis framework.

A: Introduction: The analysis of financial statements refers to the method of reviewing and evaluating…

Q: What are the most important Cash Outflows from Financing Activities? Check All That Apply Issuing…

A: Issuing Bonds: Cash inflow - Financing activity   Issuing Stocks: Cash inflow - Financing activity…

Q: Ana loaned a certain amount from XYZ Bank. She agrees to pay P5000 at the beginning of each quarter…

A: Quarterly payment (P) = P 5000 Period = 6 Years Number of quarterly payments (N) = 6*4 = 24 Annual…

Q: Mention and describe some FASB concepts, principles, standards, and rules and how they differ from…

A: Given: The concept of FASB and their differences.

Q: neasures for firms: Financial accounting and market neasures), Strategic Performance, and Social…

A: Performance measure means the process in which the performance of the firm is collected and…

Q: Selected transactions are presented below. Give the effect of the following transactions on the…

A: The transactions has the dual effects on accounting equation of the business. For example, if assets…

Q: Using terminology Match the following terms with the correct definitions:

A: Costs that do not change in total over wide ranges of volume - Fixed Cost Technique that estimates…

Q: Identify the differences of Full PFRS from SMEs PFRS. Explain

A: Financial Reporting Standard can be defined as the standards being incorporated by the business…

Q: LIFO and FIFO. What is the differences? Examples

A: Computations under FIFO

Q: Match the following statements to the appropriate terms!

A: A financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken…

Q: Explain the spectrum of INTEREST, including all the terms used and their various differences.

A: Interest rate is the rate a lender charges on the borrowed fund or principal amount. It is mentioned…

Q: SCENARIO Erik thinks that he paid more in taxes last year than he should have. He wants to compare…

A: Tax is a charge for having excess income over the specified exemption limit. A tax is paid to the…

Q: 3) Consider the following three stocks: Stock Price Number of shares outstanding Stock A $ 10 200…

A: A value weighted index assigns weightage to various securities according to their market…

Q: Exchange Rate Se(5/6) $1.45 €1.00 F360 ($/) $1.48 - €1.00 Options: A. $159.22 B. $153.10 C. $439.42…

A: According to interest rate parity theory the differential in the interest rate of two countries…

Q: Define OEM and EOM? Give three differences between them?

A: Original Equipment Manufacturer (OEM):An original equipment manufacturer is referred to as a company…

Q: Explain the basic concept of ABC analysis.

A: Answer

Q: Does the Equivalence Calculations require a common time basis for comparison?

A: Equivalence approach for calculation is used when lives of the projects are not equal. When the…

Q: Which of the following is not a constraint on the fi nancial statements according to the Conceptual…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.