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Financial Management

answered on 09-Feb-23 12:27

What does leverage mean??. Under Fm Why we need to learn and Can anyone explain to me with a simple example

latest answer

Example to understand Leverage:- ABC ltd has return on equity at 15% and cost of debt at 10%. Now ABC Ltd can increase its debt for which the cost is lesser than return on equity. This act of increasing financial risk (increasing debt) is known as Leverage.

Balachandar S

Balachandar S

CA Inter

59K+

4

468

Ratio analysis

Financial Management

answered on 09-Feb-23 12:39

In this illustration 2, For Average debtors and average stock we're taking closing values. My question is The values in the abridged balance sheet given in the question are opening values or not? If yes why we're not using them for avg computations and op clo spcks in trading ac?

latest answer

Thanks sir

Vijay Ramesh

Vijay Ramesh

CA Final

2K+

2

545

Ca intermediate

Exams

answered on 09-Feb-23 13:26

Iam planning to write group 1 nov 2023 . Can I write group 2 may 2024

latest answer

Yes ok brother

siddesh N

siddesh N

CA Inter

4K+

7

617

Pgbp

Direct Taxation

answered on 09-Feb-23 10:05

Here , actually cost should be cost minus depreciation from the date of acquisition right . Y not taken here ?

latest answer

As per Section 43(1) Explanation 5 states about personal property building used for the purpose of the business or profession after 28/246, the actual cost shall be the cost to the assessee minus depreciation calculated at the rate in force since the date of its acquisition. This explanation doesnt mention about other assets.

Reetikaa R

Reetikaa R

CA Final

7K+

4

494

residential status

Direct Taxation

answered on 09-Feb-23 08:28

Share warne, an Australian cricket player, has been coming to India since 1991-92 every year to play cricket and has been staying here for about 4 months. What will be his residential status for the assessment year 2019-20. after satisfying basic conditions, I have a doubt how the secondary conditions are satisfied and how can we justify he is a resident and ordinarily resident.

latest answer

Yes I got it.

Pooja Kauzu

Pooja Kauzu

CA Inter

16K+

3

748

Banking companies

Accountancy

answered on 12-Feb-23 15:31

Can we write Bill discounting entry for this?

latest answer

Question is only on rebate part and amount to be transferred to P&L

Vasu Naidu

Vasu Naidu

CA Inter

0

3

574

As 19

Accountancy

answered on 12-Feb-23 15:42

Unearned finance income is difference between gross investment and net investment right?. Then why here they do like this?.. Can anyone explain

latest answer

Here they have computed PV of MLP to determine whether it is a finance lease or operating lease.

Someswar Reddy

Someswar Reddy

CMA Inter

240

5

780

Functions

Maths & Stats

answered on 08-Feb-23 18:31

How do you calculate inverse of a function like in q no. 16?

latest answer

Kindly refer to the attached pic.

Vedant Vijay

Vedant Vijay

CA Foundation

1K+

2

562

MCQ

Others

answered on 09-Feb-23 12:38

Sir for theory subjects in ca inter . ICAI process MCQ booklets right MCQ available in 1FIN app are also those only or other MCQ? Should I practice MCQ in those books as well as in this app

latest answer

you can try MCQ in Fin app. That only gives you a idea of MCQ. You have to go through ISM meticulously with conceptual clarity to crack the MCQ in ICAI examinations.

Harshitha Kalidindi

Harshitha Kalidindi

CA Final

51K+

5

560

Correct entry

Accountancy

answered on 09-Feb-23 00:00

Please show the working

latest answer

You can take a suspense account instead of cash

ABU NASAR

ABU NASAR

CA Foundation

7K+

8

432