MCQ with Answers about Bonds and Bonds Value
Bonds and Bonds Value Quiz A) Coupon B) Face value. C) Maturity D) Yield to maturity. E) Coupon rate. Answer: A 2. The principal amount of a bond that is repaid at the end of the loan term is called the bond’s:A) Coupon B) Face value C) Maturity D) Yield to maturity E) Coupon rate. […]
What is Money Measurement Concept in Accounting?
The money measurement concept states that a corporation should only report those accounting transactions that can be represented in terms of money. It means that the focus of accounting transactions is on quantitative data rather than qualitative information. A high number of items are never reflected in a corporation’s accounting records, which suggests that they […]
Factors determining the credit policy of a firm
A company’s credit policy is vital in the management of cash flow, reduction of financial risks, and good customer relations. It establishes the terms upon which credit is offered to customers, such as payment terms, credit limits, and collection processes. A good credit policy balances increasing sales with the receipt of timely payments, thus affecting […]
Differences between imputed costs and capitalised costs
Among the many categories of costs, imputed costs and capitalized costs are the most confusing. Both play a critical role in assessing and managing expenses, but they serve different purposes and are applied in distinct contexts. This blog will discuss the fundamental differences between imputed costs and capitalised costs, and their impact on business decisions […]
Internal rate of return method for investment appraisal
The Internal Rate of Return (IRR) is one of the most common methods for investment appraisal. IRR is also known as the Internal Capitalization Rate. It is one of the more straightforward methods for valuing an investment and is easily derived from the net present value (NPV) method and discounted cash flow (DCF) models. It […]
Accounting for not-for-profit organisations
A not-for-profit organisation is a business or entity established by individuals to further an end, not-for-profit and charitable. Not-for-profit organisations have one of two primary purposes: to advance the social, economic, or environmental well-being of the people or to bring into existence or to carry out activities that, although benefiting some other end, get greater […]
Ratios that are likely to help the management
Ratio analysis is the process that involves analyzing and interpreting data coming from different financial accounts, such as the balance sheet and profit & loss account. It is comparing one number with another. It interprets financial statements easy to do for the users, including shareholders, investors, creditors, the government, and analysts. Ratio analysis is an […]
What is Activity-Based Costing (ABC)?
Activity-based costing is a method that assigns costs to the different activities involved in making a product to allocate a company’s funds equitably. The ABC approach was first developed by Robert S. Kaplan and David P. Norton, as well as the ABC Research Group at Harvard Business School (HBS), in 1976 and introduced by Kaplan and […]
What is the Meaning of the Ad Valorem?
Ad valorem is a Latin phrase meaning “according to value.” In essence, it is used to describe a tax levied based on the value of the item being taxed. It is commonly used in finance and taxation to refer to a tax or assessment that is based on the value of a particular item or […]
What Are Dependent and Independent Investments?
In evaluating the investment proposals presented to management, it is important to know the possible interrelationships between pairs of investment proposals. A given investment proposal may be economically independent of, or dependent on, another investment proposal. Economically Dependent Investments An investment proposal is economically independent of a second investment if the cash flows (or the […]