Asset/liability management Also called surplus management, the task of managing funds of a financial institution to accomplish the two goals of a financial institution: 1) to earn an adequate return on funds invested, and 2) to maintain a comfortable surplus ofassets beyond liabilities. Asset acti...
The FMV of the target’s equity is equal to the purchase price. Note that the value of the target’s retained earnings is implicitly included in the purchase price paid for the target’s equity. c The difference of $100 million between the FMV of the target’s equity plus liabilities les...
a. True b. False According to the clean surplus accounting, ending book value of equity equals beginning book value plus earnings. a. True b. False Determine if the following statements are true or false: Once a useful life is...
(v) The market value of assets under each such Employee Plan which is a Pension Plan (other than any multi-employer plan) equals or exceeds the present value of all vested and non-vested liabilities thereunder determined in accordance with PBGC methods, factors, and assumptions applicable to a...
Current Liabilities are Rs 50,000; Liquid Ratio is 2:1; Current Ratio is 3:1. Calculate Quick Assets, Stock-in-trade, and Current Assets. Which one of the following items is not a measure of a...
44、e NAV is the prevailing market value of all the shares and assets owned by the fund less the funds liabilities and then dividing by the number of mutual fund shares outstanding. Many closed-end funds sell at a discount of 5 to 20 percent from their NAV.e: Distinguish between a load...
which equals 1 if the company has used the normal format, and 0 otherwise. The more abbreviated financial statements have a simpler format, and the information is less disaggregated. Additionally, when firms are permitted to use abbreviated balance sheets, cash flow and equity statements are not ...
Financial statement and footnote information on the audit report includes the criteria for calculating income tax expenses, deferred tax assets and liabilities. We manage risks that may arise in relation to taxation, and prevent tax-related risks by fulfilling our tax payment obligations in a fair ...
decisions concerning the liabilities and stockholders' equity side of the firm's balance sheet, such as thedecisionto issue bonds. Fixed asset Long-lived property owned by a firm that is used by a firm in the production of its income. ...
The swap or protection buyer purchases a bond from the swap or protection seller, paying a "dirty price." This price equals the par value of the bond plus its accrued interest. The buyer enters a contract to pay the seller fixed coupon payments equal to those received from the bond. The ...