Topic 1 DQ 1 ENT

D3 Finance A Business Incubator may also provide marketing assistance to startup companies. Question 30 options: True The SEC does not permit business incubators to provide marketing assistance. false The above statement is true only if the articles of association demand it.

QUESTION 3 FICO scores to assess the creditworthiness of individuals include the following except     Credit History     Length of credit history     Education     Amounts owed   QUESTION 4 A bank is in the processing of rescheduling a $10 million loan paying 14% interest. If liquidated, it expects to receive $8.4 million. The rescheduling terms are as follows: Amount       $10,000,000 in year 0     New maturity in years   5       Interest rate     8%       Principal payments in millions   $5,000,000 each in years 4 and 5 Upfront-fee     1.00%       Cost of capital after rescheduling 14.00%                       Should the bank reschedule the loan?             Yes, reschedule the loan because the NPV is greater than liquidation value     No, do not reschedule the loan because the liquidation value is lower than the NPV     Reschedule the loan only if the cost of capital after rescheduling is 12%…

Answer true or false 1. An investors financial position will also affect his or her objectives. 2. You will incur pre-termination charges against the earnings of your time deposit if you will pull-out your investment from the bank prior to maturity

Question A14 A business has seen its trade receivable days increase from 32 days to 45 days over the past year, which of the following would not be an action the business should consider to reduce the trade receivable days. A Credit checks for new customers being taken on by the business B Having regular contact with suppliers to maintain close relationships C Having a robust credit control procedure including a review of aged debts with prompt action on late payments D Make credit terms clear on all invoices

M7 Q7 The following table contains current asset and current liability balances for Microsoft Corporation​ (MSFT):   ATTACHED a.  Assume that you are the lead banker for the syndicate of banks that manage Microsoft​ Corporation's line of credit. Your boss has asked that you report to him on the current state of​ Microsoft's liquidity. How would you describe the liquidity of Microsoft in​ 2013? b.  Have there been recent changes in​ Microsoft's liquidity? If​ so, have the changes been to improve the​ firm's liquidity? Explain your observations.

B.  Study the following items related to transactions during the year to September 30, 2020 for Thompson’s Tours’ Inc.  All transactions are reported on the financial statements in $XCD.   I.     A bank overdraft of $200,000 in a chequing account at St Kitts National Bank.   II.   A saving account with a balance of $400,000 at Open Campus Bank and chequing account with an overdraft of $100,000 at the same bank repayable on demand.   III.  The Operation Manager was given a salary advance of $2,000 on August 24, 2020 and this amount was deducted from his October salary.   IV.  CAD$3,045 on hand from tips up to March 31, 2020, its pre-COVID operations when the exchange rate was CAD$1 = $2.01 XCD.  On September 30, 2020, the exchange rate was CAD$1 = $1.95 XCD   V.   Special Edition Independence postage stamps on hand valued at $200.   VI.  Cash holdings of US$100,000, the exchange rate on September 30, 2020 is $2.70.   VII. Petty cash on hand valued at $1,500.   VIII. A cheque in the…

Qestion 1 a) Many loan agreements have financial covenants that rely on: Multiple Choice A. floating GAAP. B. fixed GAAP. C. flexible GAAP. D. regulatory accounting procedures (RAP). b) With respect to executive compensation, the Dodd-Frank Act requires that shareholders: Multiple Choice A. vote on executive compensation at least once every three years. B. vote on executive compensation every fiscal period. C. determine the annual executive compensation package for key executives. D. not discuss any aspects of executive compensation with-non shareholders.

Exercise 1: Explain some of the measures taken to reduce the agency conflict problem. Exercise 2: What will be the effect on the balance sheet if a firm buys a new processing plant through a new loan? Exercise 3: According to the text, did Enron and WorldCom follow Generally Accepted Accounting Principles (GAAP) in their financial reporting process? Exercise 4: Briefly discuss the issues in the agency conflict problem.

Q.1 Answer the following: a) Jim Tang, CFA, is a sell-side investment analyst. While at a software industry conference, Tang hears rumors that Blue Run Software may have falsified its financial results. When he returns to her office, Jim conducts a thorough analysis of Blue Run. Based on her research, including discussions with some of Blue Run's customers, Tang is convinced that Blue Run's reported 50% increase in net income during recent quarters is completely fictitious. So far, however, Tang is the only analyst suspicious about Blue Run's reported earnings. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, the least appropriate action for Tang is to... (only one possible answer) Report her suspicions to Blue Run Do nothing until other analysts support her analysis. Recommend that her clients sell their Blue Run shares immediately. None of the above. b)  Nick Bolton, CFA, acts as an outside portfolio manager for a Swiss wealth fund. Ralph…

Ma.1 9. Reliable accounting and financial reporting aid society in allocating resources in an efficient manner. Explain why audits are demanded by society? Support your answer from the Annual report of 2021 of Central Bank of Kuwait?

Help. 14. Making a credit decision is based upon all of the following except which? a. character b. capital c. complaint d. Collateral 15. Statement I: The aggressive approach to working capital financing is where the company finances temporary current assets, some or all of its permanent current assets, and possibly some of its long-term capital assets with short-term debt. Statement II: The conservative approach to working capital financing is where the company finances temporary current assets, some or all of its permanent current assets, and possibly some of its long-term capital assets with short-term debt. Which of the above statements is/are true? a. I only b. II only c. Both I and II d. Neither I nor II

Q5. Corporates needs business loans for their day to day operations, suppose you are workingin credit department in Private Sector Bank and a customer approach you for taking termloan, the basic characteristics of term loans are that term loan commitments are of long term.as a banker how would you decide whether to provide him a term loan or not? Along withthis also explain the documents required for term loan by customer?

True or FalseS1: A branch is able to report an investment in another branch of the home office, as long as such investment account is to be eliminated in full when preparing combined financial statements. S2: Contingent considerations in a business combination are only recognized if the outflow of economic resources is probable and the estimated outflow can be measured reliably.a. TT b. TF c. FT d. FF

Question 2   Ross Enterprises has a contract with Big Steel Company Limited in respect of Information Technology (IT) Services. The contract was signed on January 1st 2020 and will be effected on the 1st April 2020.   In mid-February 2020 Big Steel’s sales plummeted due to the Covid 19 pandemic. In addition, an already high long term debt, and operating cost, as well as Big Steel’s current negative cash flows situation placed the company in serious financial peril. Indeed if they cannot find a resolution soon to deal with their cash flow problems and debt, they will have to close operations permanently and send all employees home.   Upon hearing this pronouncement, the Trade Union representing workers at Big Steel advised management that they will take strike action. This further affected the operations of Big Steel and resulted in a loss of production, sales and the much-needed cash flows, which is critical to pay off their debt and meet current fixed operating cost.  On 3rd March…

True or false  1) the requested loan can be repaid in 1, 2, 3, or 4 periods, while the emergency loan must be refunded in the next period. 2) The redemption of the financial investment is carried out automatically if cash resources are missing. Otherwise, the rescue will not take place 3) The percentage of income tax can not be changed between periods.

block c/2019/1/2 How long does a company obliged to prepare accounts in accordance with the German Commercial Code (HGB) have to keep an opening balance sheet? What are accounts receivable ? What does the active or  active or active person inform about?  Liabilities side of a balance sheet?  How can I determine the annual result in the balance sheet?

Answer true or false 1..Your personality should be considered in making an investment 2. An investors financial position will also affect his or her objectives. 3. You will incur pre-termination charges against the earnings of your time deposit if you will pull-out your investment from the bank prior to maturity.