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RISK FREE SECURITIES

AFM

answered on 09-Oct-24 05:55

In this sum, you did find out the value to be invested in Risk Free securities using an equation; can we find out in the way given below. =(5000/1.3)*0.91=Rs.3500. Rs.5000-Rs.3500=Rs.1500==> To be invested in Risk Free security.

latest answer

Why did you divide by 1.3 & multiply by 0.91 you should be able to explain it in exam. Only then you will be awarded marks

Mohanbabu N

Mohanbabu N

CA Final

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1

306

Mock tests

Auditing

answered on 11-Oct-24 16:05

Sir / ma'am as i was scrolling through your app i got to know you have mock tests for sep 24 but not for Jan 25 so by till what time will they be available?

latest answer

Ok sir thank you

Nagarathna N

Nagarathna N

CA Inter

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2

636

PM

CFA

answered on 08-Oct-24 19:34

Sir pls explain why return as per CAPM is lower then market return we say stock is undervalued?is it just a rule or any logic is there

latest answer

CAPM

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

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602

FV not enitity specific

Financial Reporting

answered on 08-Oct-24 15:25

what if the asset is a share of the company,in that case the fv can be affected because of the entity right?like any issues happening within a company.so why entity specific conditions are not considered at such cases to determine its FV?

latest answer

Whether you hold the shares or I hold the shares, FV is not changed right. So it doesn’t depend on any specific entity holding.

Sandra Raju

Sandra Raju

CA Final

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212

porfolio

CFA

answered on 08-Oct-24 13:35

Relative to portfolios on the CML, any portfolio that plots above the CML is considered: A.inferior. B.inefficient. C.unachievable. ans is c pls say why

latest answer

Above CML means above the CML line If it is above line for same risk you get higher return . That means it is superior and more efficient So options a and b are out Such a portfolio is not possible because in a market for same risk you will not get higher return

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

★ 18K+

1

639

Compiler

Direct Taxation

answered on 09-Oct-24 09:08

Sir, will Direct & Indirect Tax compiler be available anytime soon

latest answer

We do not provide compilers for taxation as the laws will change

Shwetha Ram

Shwetha Ram

CA Inter

★ 6K+

1

593

Variable cost

Costing

answered on 08-Oct-24 11:24

Does variable cost exist in selling and distribution.? For example if it's in the case advertising made on the Bottle, then it such overhwad will be based on no of bottles made right?....

latest answer

It depends on case to cas basis Fixed costs Some selling and distribution expenses, like rent and base salaries, are fixed costs that remain the same regardless of sales or production volumes. Variable costs Other selling and distribution expenses, like distribution costs, are variable costs that change as sales volumes increase or decrease. Semi-variable costs Some selling expenses can be considered semi-variable costs because some components change as sales volumes change, while others remain stable

07- Issac Jolly-XII C

07- Issac Jolly-XII C

CA Inter

★ 16K+

1

745

Wage/salary payable

Costing

answered on 11-Oct-24 08:53

In this video. Sir have mentioned that wage payable include statutory employer payment. How does employers statutory payment involves in payable.

latest answer

Wage payable to employee = basic minus employee share deducted Cost to be debited= basic plus employers share. Hope this clarifies

07- Issac Jolly-XII C

07- Issac Jolly-XII C

CA Inter

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4

621

Abnormal control cost

Costing

answered on 11-Oct-24 08:59

Even of it's abnormal control, it will still be charged to costing p/l right?... Or is there any other accounting treatment.

latest answer

Abnormal items will be debited to the costing p nl

07- Issac Jolly-XII C

07- Issac Jolly-XII C

CA Inter

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1

596

General Query

Financial Reporting

answered on 09-Oct-24 13:39

Will rent be considered as lease? Eg: There is a hotel and they have taken ground floor on rent , the asset is identified the period is not fixed as it can be for longer period also, will it be considered as lease. If yes, the won't everything will be on lease. If such is the case, everybody's books of accounts shall have lease liability.

latest answer

Got it. Thank you sir!

Hrishikesh Pradhan

Hrishikesh Pradhan

Qualified CA

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801