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Will The market of any real or financial asset may be estimated by determining future cash flows and discounting them to the present?
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Why is important to present accounting and financial information in manner that is attractive and easy to read?
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Why is it necessary to carry out auditing every year?
It ascertains how far the financial statements as well as the non-financial disclosures present a true and fair disclosure of the concern
What is the difference between What is the difference between financial accounting and management accounting?
Financial accounting is used to present the performance and financial statements to third parties while management accounting is used for company's internal working purpose.
What is the relation between accounting theory and accounting practices?
Accounting theory examines practical and theoretical issues in accounting practices such as historical costs, decision usefulness, portfolio risk, fair-value-oriented standards and executive management compensation and earnings. In addition, it also discusses economic and political issues and criteria related to accounting practices required by accounting governing bodies such as Canadian Institute of Chartered Accountant (CICA), Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB). The first goal of accounting theory is to describe and explore various theories that underlie financial accounting and reporting. The second goal is to explain and illustrate the relevance of these theories in order to understand the practice of accounting and reporting. Some of the main theories are based on economics and finance. For instance, by discounting future cash flows to present time, the present value model enables a theoretically correct basis of asset and liability valuation and income measurement of a firm. Thus, the present value model provides a benchmark to guide accounting practice. From a finance stand point, portfolio and efficient market theory are used in accounting practices in understanding how investors make rational investment decisions and how they use financial accounting information to make their decisions. Accountants can then prepare financial statements that are of greatest use to investors. To put in a nutshell, accounting theory helps to understand the impact of complex ideas and regulations on financial reporting and the interpretation of information generated by financial reporting at the conceptual level.
Where do you present the vat payable account in the financial statement?
VAT payable is liability for business and shown in liability side of balance sheet of business.
In what situations is the financial mechanism of discounting applicable?
Essentially, the financial mechanism of discounting is applicable when one party owes money to another party in present purchases, the other party then has the right to delay the payment until a future date.
If you want to find the present value of an investment you should choose the financial function?
You can use the PV function or the NPV function. Present Value is the result of discounting future amounts to the present. Net Present Value is the present value of the cash inflows minus the present value of the cash outflows.
What is discounting principles in managerial economic?
The discounting principle in managerial economic is the opposite of compounding. It is based on the present value of a sum of money you are getting in the future, the discount rate and the frequency.
What is the laboratory procedure for determining the pathogen present in sputum?
Sputum culture is the laboratory procedure for determining which pathogens are present.
The process of finding the present value of some future amount is often called?
It is discounting. Good luck!
Is valuation of a financial asset based on concept of determining the present value of future cash flows?
How is the value of any asset whose value is based on expected future cash flows determined?
What is the meaning of expected net present value?
It is the expected value of all cash flows of a project brought back to the present value, by discounting it by the cost of capital involved in the project.
What is the present tense of determined?
I/you/we/they determine. He/she/it determines. The present participle is determining.
What is the present value in excel?
Present value is a financial term and is the result of discounting future amounts to the present. For example, a cash amount of $10,000 received at the end of 5 years will have a present value of $6,209.21 if the future amount is discounted at 10% compounded annually. Excel provides a function called PV for calculating the Present Value. For the example given, it would be as follows: =PV(10%,5,0,-10000) That is 10% over 5 years, with no payments at the end of year with value owed being 10,000.
What is the difference between how to determining and how to determine?
"How to determine" is correct. The "to" is part of the infinitive form, "to determine". "Determining" is the present participle form and cannot follow "to", so "how to determining" is incorrect.
What is the difference between compounding and discounting?
Compounding finds the future value of a present value using a compound interest rate. Discounting finds the present value of some future value, using a discount rate. They are inverse relationships. This is perhaps best illustrated by demonstrating that a present value of some future sum is the amount which, if compounded using the same interest rate and time period, results in a future value of the very same amount.
How do you check your present SSS contributions?
my financial
