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Financial Management

answered on 01-Jun-21 09:37

Is formula for ROI same when firm consists of debt and when no debt ??? In list of formula list when debt conists formula is. EBIT / debt + equity . But in this sum they solved as EAT /Equity share holders fund

latest answer

ROI refers to the return of any investment made. Here You should ideally compute ROI on total Equity & Debt investment - they have computed ROE and called it as ROI - you may compute ROE and call it ROE seperately

Enuguru Sai Nithin

Enuguru Sai Nithin

CA Final

78K+

1

601

Sec 102

Corporate & Other Laws

answered on 31-May-21 14:02

Sir the penalty is payable to the Govt or the company? Please clarify

latest answer

The penalty is payable to the Government. Section 102(4) says in case any benefit accrues to the promoter, director etc., then they are liable to compensate the company to the extent of benefit received. Whereas Section 102(5) talks about the penalty which has to be paid, which can be Rs. 50,000 or 5 times the amount of benefit accrued, whichever is higher.

Priyanka Udeshi

Priyanka Udeshi

CFA L1

14K+

1

638

doubt

Costing

answered on 31-May-21 13:57

what is difference between cost accounting vs financial accounting

latest answer

Thank u mam

Chandramouli A

Chandramouli A

CA Inter

720

2

771

Amendments

Indirect Taxation

answered on 01-Jun-21 10:44

Whether October 2020 study material includes only the amendments which have become effective as on 31.10.2020 or also the amendments not become effective as on 31.10.2020?

latest answer

Not included in the study material. For example - Finance Act 2020 Amendment to Sec 10 "119. In section 10 of the Central Goods and Services Tax Act, in sub-section (2), in clauses (b), (c) and (d), after the words â??of goodsâ??, the words â??or servicesâ?? shall be inserted." Check the material https://resource.cdn.icai.org/62133bos071220-cp3.pdf page 3.33, the amendment is not included

Nivedha Balaji

Nivedha Balaji

CA Final

9K+

5

832

Consolidation

Accountancy

answered on 01-Jun-21 17:04

Sir Do i want to read cross holding sums in consolidation in inter level?

latest answer

No. Cross-holding sums shall not be asked at Inter level

Pradeep Ravikumar

Pradeep Ravikumar

CA Final

1K+

3

700

AS 22

Accountancy

answered on 31-May-21 14:53

Sudharsan: Dear sir, My doubt is how the (1) question is deferred tax liability Income tax depn is less than a/cing depn so, pay now save later then it must be deferred tax asset only But they tell it is a dtl Depn low as per tax records = profits more = tax pay high= Save in future =so DTA According to my thought, but i didn't know whether it is correct

latest answer

https://youtu.be/WMJWDyKp3X0 Please watch the above video to understand it better

Suriya M

Suriya M

CA Final

31K+

3

742

Fiscal policy

Economics

answered on 31-May-21 11:26

Sir Could you tell what is fiscal deficit and primary deficit?

latest answer

Thank you mam

Suriya M

Suriya M

CA Final

31K+

4

725

Capital gains

Direct Taxation

answered on 31-May-21 09:44

In question number 11 of capital gains, We deduct indexed cost of acquisition [5L*301/100,(Previous owner borrowed â?¹5L in 2001 from bank for purchase of house)] and also we deduct indexed cost of improvement [15L*301/137(15L was repaid by son to bank)]. If this was the case then First â?¹5L is deducted as cost of acquisition and â?¹15L is also deducted as cost of improvement, But in this 15L that 5L also included ah sir? If yes then it may amount to two deduction of â?¹5L(exclude indexation benefit).

latest answer

Cost of acquisition and repayment are different aspects. We have to treat them separately for the purpose of computation. Whether actual cost of aquisition was paid by actual owner is irrelevant

Naveen Kumar S

Naveen Kumar S

CA Inter

1K+

3

667

Monetary policy

Economics

answered on 31-May-21 10:04

How does interest on loan borrowed will increase the opportunity cost of holding money ?

latest answer

The opportunity cost of holding money is the interest rate a person could earn on other assets. Therefore, higher the interest rate, higher would be opportunity cost of holding cash and lower the demand for money. The nominal demand for money rises if the opportunity costs of money holdings (i.e. returns on bonds and stock) decline and vice versa. Higher the interest rate higher would be opportunity cost of holding cash and lower will be the demand for money.

Rithani R.C

Rithani R.C

CA Inter

4K+

1

2K+

Material to study from

Direct Taxation

answered on 30-May-21 17:27

Which material is sufficient for Direct Tax: ICAI or Indigolearn study material?

latest answer

You can study from any material for understanding but never go to exam without refering once to ICAI study material .... It could be a big blunder!

Rithani R.C

Rithani R.C

CA Inter

4K+

1

762