V. Prepare the Trial Balance

Q: Prepare the following a. Direct method  b. Step-down method (allocate MR first)  c. Step-down…

A: Part a: Direct Method: Workings:

Q: Explain the differences between a PPO and an HMO.

A: The question is based on the concept of different types of health insurance policy and their…

Q: What constitutes a dicontinued operations.?

A: Definition:   Income statement: The financial statement which reports revenues and expenses from…

Q: Explain the call-put parity relation and how it is justified?

A: call-put parity relation 1. It shows the prices of calls and puts , consistency of underlying…

Q: What do you mean by put option? Explain in 2 - 3 sentences

A: A Put option is an instrument which provides its holder an option to sell an underlying asset on a…

Q: The like-kind exchange rules are elective. True or false

A: Like kind exchange is when money from selling one assets is invested in similar types of assets than…

Q: this is wrong. Answer is B

A: A dividend is defined as the part of the profit which is not distributed by the company among the…

Q: What is meant by Remainderman?

A: The remainderman is a beneficiary that receives the principal left in an estate or trust after a…

Q: Req C is incorrect.

A: Equivalent unit of production is multiplied by cost per equivalent unit to compute the assignment of…

Q: Explain preemptive right

A: Answer: A pre-emptive right is a benefit that can be granted to other owners in a company that gives…

Q: elated factor can (pick the best) Select one: a. reverse an association

A: The answer has been mentioned below.

Q: equivalent sets.

A: The objects of the sets X and Y are totally different that is they have no common element as such.…

Q: What is a limit order?

A: Limit order It is such an order to buy or trade a security at or superior to a predefined cost. The…

Q: How do I add an excersise to my qbw?

A: Exercise can add to QBW by open up the exercise that we wish to add to our workout by going to…

Q: This cannot be correct: I have options of this   a. (i) only b. (ii) only c. (iii) only d. (i)…

A: As per the business combination standard (IFRS 3) only acquisition method will be used for…

Q: Why option A is incorrect?

A: revenue is generated by the business whenever  goods or services are sold by the business.this leads…

Q: please question d) e) and F)

A: in order to calculate Weighted average cost of capital it is important to know the cost of capital…

Q: Project b npv is incorrect. MIRR is wrong for A and B.

A:

Q: Under Tier 2 Mudaraba: The Mudarib contributes only managment. a. TRUE b. FALSE

A: Tier 2 Mudaraba : This is a pre Islamic Arabic type of finance under which one individual provides…

Q: Distinguish between vesting and non-vesting conditions.

A: Share-based payments: These payments agreements are the transactions in which a third party is…

Q: What is the dual aspect term

A: solution concept Dual aspect                 Each and every transaction shall be recorded by giving…

Q: Define Double-entry system.

A: Double entry system: Double entry system is a way of accounting or bookkeeping which implies that…

Q: The first amount was inccorect

A: Solution:- When equal amount is paid each period at end of period, it is called ordinary annuity.…

Q: What is the LIFO conformity rule?

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Over subscription and under subscription

A: Over subscription and under subscription are terms associated with the issue of shares of a company…

Q: utio

A: In general, a "eligible rollover distribution" is any payment paid in a lump sum or over a period of…

Q: What are special allocations?

A: Introduction: Special allocation for a business is considered as distributing profits and losses…

Q: A $385,000 house is to be purchased for 25% down and monthly payments of $1200 for as long as…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: Determining current portion of long-term note payable On January 1, Irving Company purchased…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: 4. Which of the following statements is correct? I. An entity shall present separately each…

A: As per IAS 1 Presentation of Financial Statements,  The objective IAS 1 of IFRS is to prescribe the…

Q: Float is defined as the difference between the:

A: The formula to compute float as follows:

Q: What is the primary difference between the APT and the CAPM?

A: APT is an abbreviation used for arbitrage Pricing Theory whereas CAPM is an acronyms used for…

Q: Please answer section d) only

A: Degree of combined leverage (DCL) It is a leverage ratio that includes the combined effects, caused…

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…

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.