Which of the following is an acceptable accounting approach for distributions und method? cumulative investment approach net accumulated benefit approach nature of distribution approach net unrealized appreciation approach

Q: What are the measurement alternatives involved with using ROA as a performance measure? For example,…

A: The return on asset is the financial ratio that is used by the company in order to analyse how…

Q: Which capital investment methods require the use of a present value table?

A: Net Present Value: It is a measure of profitability for a project used primarily in capital…

Q: Does the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measureof…

A:

Q: What is the quantitative disclosure of lessee?

A: Lease Agreement:   It is a contract between the owner of the asset (lessor) and the person who uses…

Q: Consider the advantages and disadvantages of using the accounting rate of return as an investing…

A: This question explains about  the advantages and disadvantages of using the accounting rate of…

Q: Gain contingencies are usually recognized in the income statement when: a. realized…

A: Introduction: Contingency relates to the actual situation in which there is a chance of making or…

Q: Explain and evaluate the eff ects on financial statements and ratios of capitalizing versusexpensing…

A: Capitalizing Costs: When any cost is incurred with respect to any asset which will provide long-term…

Q: What element should be assessed when considering the quality of profit and loss and balance sheet.

A: The elements are as follows: Leverage is a measurement of the business's ability to meet long-term…

Q: Define the terms, or give short explanations.         -percentage return -price discovery…

A: Risk and return are two essential concepts in finance that are closely related to each other. In…

Q: how the cost of capital serves as a screening tool when dealing with the net present value method…

A: Answer with explanation are as follows. cost of capital - cost of capital is a expected rate of…

Q: Present the Capital Asset Pricing Model (CAPM) and discuss how the  theoretical model is made…

A: The capital asset pricing model (CAPM) gives a straight line to relate the systematic risk in terms…

Q: Demonstrate the link between net present value and internal rate of return and how they may be used…

A: According to the question, the relationship between net present value and internal rate of return

Q: What is the possible link between the following ratios: (a) profitability and efficiency (b)…

A: SOLUTION A- Relation between profitability and efficiency ratios   Profitability ratio depicts how…

Q: Discuss each group of ratio’s relationship to the balance sheet and income statement. Liquidity…

A: Ratio Analysis is a quantitative tool or method used for gaining insights into a company's…

Q: each of the characteristics apply to large deductible plans. A. Degree of loss sensitivity B. Cash…

A: Large deductible plans : It is an employee compensation insurance plan. It is an insurance plan for…

Q: In general terms, how would a change ininvestment opportunities affect the payoutratio under the…

A: Answer: In the residual dividend policy, the distribution is calculated after the company’s spending…

Q: Explain what is meant by Accounting Rate of Return (ARR) and Net Present Value (NPV) in the context…

A: Solution:- Accounting Rate of Return (ARR):- It measures the expected profitability from any capital…

Q: lain the relationship between return on equity (ROE), return on asset (ROA), and leverage effect.…

A: Return on equity and return on assets shows how much is the profit earned by the company and are…

Q: What is the total revenue of the reportable segments after considering the quantitative thresholds…

A: The reportable segments are those segments which have to be shown and to be declared by the company…

Q: What is multistage valuation model?

A: The multi-stage dividend discount model is an equity valuation model that expands on the Gordon…

Q: hat is the MOST important variable of the financial planning process? Select one: a. The costs b.…

A: Introduction : In simple words, the financial planning refers to the process in which an individual…

Q: What is a stand-alone principle and discuss the relevancy of financing cost under this principle.

A: In capital budgeting, the project evaluation and assessment is based on the criteria of project's…

Q: Explain and evaluate the effects of capitalizing versus expensing costs in the period in which they…

A: Capitalization : When a company incurs any expense, benefit of which will be available for more than…

Q: Discuss how the Accounting Rate of Return as an investment appraisal method is better than the Net…

A: Accounting ROR or ARR and Net Present Value(NPV) are tools that are used to make selection among…

Q: Which valuation method is dependent on a calculation of terminal value? a) DCF b) Comparable…

A: Option C is correct.

Q: Asset-Based approach in valuation

A: Assets are the future economic benefit of the company that is sacrificed in paying off the debt and…

Q: What role does the correlation what role does the correlation of two assets play in computation of…

A: The answer and the explanation can be seen below:

Q: The internal rate of return method provides a rate of return that approximates:   Both the…

A: The internal rate of return shows the estimated rate of growth in a year from the particular…

Q: Define each of the following terms: c. Net present value (NPV) method; internal rate of return (IRR)…

A: Net present value (NPV) is the contrast between the present value of money inflows over some…

Q: Discuss the pros and cons of the accounting rate of return as an investment criterion.

A: Definition: Average rate of return method: The average rate of return is the amount of income that…

Q: Briefly explain the difference between liquidity, solvency, and profitability analysis.

A: Liquidity, solvency and profitability analysis is performed to evaluate the company's performance.…

Q: What is an overbilling and how is it used in percentage - of - completion accounting?

A: In construction and project accounting, overbilling refers to the situation where a contractor…

Q: Explain how differential weight to losses and gains effect investment decisions?

A: Prospect Theory assigns differential weight to losses and gains for making investment decisions.

Q: Under IFRS, how are investment properties subsequently measured? a) The cost…

A: International Accounting Standard 40 on Investment states that the investment property should be…

Q: How can fi nancial statement analysis be used to evaluate the credit quality of a potentialfi…

A: Whenever, an investor is considering an investment proposal, he need to analyze the various things…

Q: how value drivers (Return on Equity, Net Profit Margin, and Total Asset Turnover) are related to…

A: Financial statements: Financial statements are the summary of transactions presented in the form of…

Q: facilitates the comparison of financial noriod t moth

A: Option a is wrong because historical cost concept suggests to record of assets and liabilities at…

Q: From the following givven options,identify the characteristics which relevant to bisac qualitative…

A: Financial information means information related to financial records and financial statements of…