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PURCHASING PRICE PARITY THEORY (PPPT)
Financial Management
answered on 25-Feb-25 04:30
"PPP predicts that high inflation leads to a weaker currency. While this relationship often holds true in the long run, PPP has limitations as a short-term predictor because it ignores factors like capital flows, non-traded goods, and government intervention." This basically means that, PPP fails to determine the short term factors responsible for inflation relative to the long term? If so, shouldn't it ignore the long term factors as well? It is only considering the long term only because of one factor (maybe longevity?) Thank you!
latest answer
First para right second para wrong Things always don’t happen instantaneously in short term they take time to play out - this idd acc true across financial markets In short term demand supply determine but these things change in response to inflation slowly Hence ppp plays out in long term
Nabeela Faisal
ACCA Skill
★ 0
1
231
how to find nth term
Maths & Stats
answered on 25-Feb-25 10:55
from where did that formula came 2n-1
latest answer
If you are referring to time stamp 8.35 tn = a + (n-1)d a = 1 and d = 2 then tn = 1 + (n-1) x 2 tn = 1 + 2n-2 tn = 2n-1
Rudransh Aheer
CA Foundation
★ 3K+
1
218
Compatation of WANES
Financial Reporting
answered on 25-Feb-25 10:56
Here, Whether WANES = 15,76,388.89 will be applied in calculation of Current year and Previous year - in the Financial Statement of Current year , sir?
latest answer
Current year. Previous year calculation will be done separately. Even for previous year, we would give Bonus issue impact.
Swathi S
CA Final
★ 975
1
205
Relevant Date for WANES
Financial Reporting
answered on 25-Feb-25 10:58
Shares that are issued after fixed period of time - Why don't treat it as Mandatory conversion, sir?
latest answer
Conversion from?
Swathi S
CA Final
★ 975
1
166
TRADING IN CURRENCIES
Financial Management
answered on 24-Feb-25 21:04
I did get what was explained but want to confirm if i can remember it like this : Bank will BUY @ LOW ; when you want to SELL. Bank will SELL @ HIGH ; when you want o BUY. This is also correct right? Thank you!
latest answer
Absolutely right
Nabeela Faisal
ACCA Skill
★ 0
1
197
Allocation of Goodwill and corporate assets to CGU @02.05[ Time]
Financial Reporting
answered on 25-Feb-25 11:58
Sir, As you mentioned, allocating corporate assets to CGU on a reasonable basis. Can you say what are the reasonable basis in a practical way. And also the same with allocation Goodwill to CGU..!
latest answer
Okay sir. Thank you
K Vamshi
CA Final
★ 14K+
2
213
GSTR -3B
Indirect Taxation
answered on 25-Feb-25 12:18
Does a transaction made through bill of entry reflects in GSTR 3B(like turnover details)
latest answer
Welcome.
Ramya Telikicherla
CA Final
★ 6K+
3
219
When asset is acquired before 1/4/2001
Direct Taxation
answered on 25-Feb-25 12:32
Hello sir , Sir does this special point " cost of improvement incurred before 1/4/2001 - should be ignored" is applicable to LTCG (or) for all CG ?
latest answer
Thank you so much sir🙏🏻
Nagachaitanya Nomula
CA Final
★ 8K+
7
312
inclusions- Value of supply
Indirect Taxation
answered on 25-Feb-25 12:17
In the example given for section15(2)(b), Testing agency is also required to pay GST for such 1lakh rupees for the services provided by him, so doesn't leads to double taxation of rupees 1 lakh
latest answer
Good that it is clear !!
Nisha M
CA Final
★ 2K+
3
217
Absolute ratio
Financial Management
answered on 24-Feb-25 14:12
How are marketable securities an absolute asset? Please explain
latest answer
Absolute assets are those which are equivalent to cash or can be readily be converted to cash refer page 3.7 of icai material - link below and also attached screenshot https://resource.cdn.icai.org/81825bos65985-cp3.pdf
Labdhi Jain
CA Inter
★ 180
1
201