Question No 3 a) Explain the concept of ex-ante income and ex-post income. b) Why is it necessary to take into account the closing stock in preparing a trading account? c) What is the difference between a balance sheet of a nonprofit organization and a for-profit business? Concept of ex-ante income and ex-post income EX-ANTE EX-ANTE is a word derived from Latin for ‘before the event’, this term refers to future events such as future transactions, future events, future transactions or prospects of a company. With the help of EX-ANTE analysis we get an idea of future moments in price and the future impact of a newly implemented policy. Any prediction that is made prior to either before all of the variables is known as EX-ANTE. For example, a company may note an ex-ante …show more content…
Value of risk is a probability study that approximated the maximum amount of loss an investment portfolio may incur on a day and this value of risk study utilises ex-post data. EX-POST INCOME Just as ex-post means actual events, Ex- Post Income means the actual Income that has been derived from present activities. It is used for analyzing of present or actual income that has been generated and the returns that has been earned. In other words Ex ante Income therefore means actual or real income. This means that the income we receive is not planned or based on assumptions, but is the actual income derived. It is therefore reliable and exact and tells us about our real income. For Example: 1) An employee planning for upgradation in his curriculum vitae thinks of joining a course and after finishing the course analysis increase in this earning capacity, this will be this Ex-Post Income. 2) A company wants to know the sales of newly launched product in the market, so here the Ex-Post income will be only determined after launching the product and then analyzing the
In accrual accounting, income is recorded when a sale is made and expenses are recorded when goods or services are received. If payment is made in advance for services to be completed in the next tax year, tax payment can be delayed until that next
This takes into account the use of current and/or new capabilities within the business
Taking short periods, our system allows us to get to market faster and will have more signs, but also will have many false signals. If, on the other hand, if we choose longer periods, we will have fewer signs and we will come later, but our signals will be more accurate. In the nest chapters, we will discuss various technical indicators and their impact on
Explain any special circumstances including sources of income or hardship that you believe are not reflected in your FAFSA. (159/250) Even though I believe that my financial situation is accurately represented by the information provided in my FAFSA, paying for college is still an enormous hurtle considering students pay tens of thousands of dollars when earning their degrees. While my parents have planned ahead to be a major financial component in my education, scholarships and other sources of income will play an equally important role to pay for the long education process that lies behind earning a Ph.D. Not only have I been rigorously applying for scholarships over the course of my senior year, but I also have the option to use the skills I 've learned in high school to help finance my education by tutoring German and teaching Clarinet. Despite this, scholarships still play the most important role in financing my education because they offer me the immediate financial support needed to approach
View value and Risk Driver, describe what these objective covers. The value and risk driver provide an informative basis for the achievement of control objectives and therefore for the realization and support of the risk management. Value drives can be interpreted as examples for upcoming business benefits through an adequate control coverage, where as the risk driver can be seen as examples for avoiding or handling risks.
What do pro forma financial statements show? There are various things Pro forma financial statement shows but first, let’s understand the word pro forma which means a financial statement based on projection and assumption of what the business future would be to determine what should be happening now. Pro forma financial statement can be thought of as a “Projected results for financial statements in the future, given assumptions about what will happen in the meantime” (Siegel & Yacht, 2009, p. 81).
ACC 201 Final Project Part I Accounting Cycle Report Vanessa Ann Williams Southern New Hampshire University The accountant cycle has really impacted me to gain insight on the financial side of Peyton Company. In the accountant cycle, there are many particular directions involve determining the growth of the company such as steps, role, omission and financial statements. It’s important to apply every step from the accountant cycle to make a financial critical decision in the long run. This report will have a breakdown of how to apply the accountant cycle for Peyton Company to be aware of future financial decisions to keep the company holding strong.
Traditionally, pro forma earnings are lampooned as “earnings before the bad stuff”, which are lower than the figure according the GAAP. Companies may present to the public their earnings and results of operations on the basis of methodologies other than GAAP. And this presentation in the earnings release is often referred to as “pro forma” financial information. Many companies were thought to be using pro forma figures not only to exclude one-time charges, but also to strip put recurrent costs and other elements that they claimed concealed their “true” performance. “Pro forma” financial information can serve useful purposes.
Assignment: Portfolio Income & costs and profit measures of performance Alibaba.com is a China’s B2B e-commerce company which owns a U.S. IPO that worth $25 billion has become the largest B2B e-commerce company in the world in just a few years and barely anyone expect the company can achieve this results so successful. Referring to the Appendix A, the income of Alibaba has been increasing from year 2010 to 2014. This is because of there has a few key factors of success that carried out by the founder of Alibaba.com, Jack Ma to operate the e-commerce business in the global marketplace.
Efficiency of financial markets is one of the fundamental issues in finance. The central idea of market efficiency is that market prices of securities represent true value of securities. All relevant information is immediately reflected in the prices causing abnormal profit making impossible in the market. The efficient market hypothesis further implies that prices will move randomly that makes prediction of prices extremely difficult. Efficient market hypothesis requires that investors will be rational and have homogenous expectation.
Given the risk considerations provided in the RCD tool and the Portfolio Theory, the next step should be understanding the available risk/return metrics and determining an optimal mix of assets. Risk Metrics and Advantage/Disadvantages There are two risk metrics used in the model, Conditional Tail Expectation (CTE) and Value at Risk (VaR). These two metrics both look at the tail of the distribution. VaR is a measure of particularly poor outcomes in a stochastic projection. Its major shortcoming is its lack of statistical coherency.
Low income families do not just get the title “poverty” branded onto them, but they have much more negative effects attached to the label. These families in the bottom third of the income group suffer immensely and this does not solely affect the family as a whole, but it affects each and every individual included. After several readings about how these families are affected, it is important to point out that children are the most unfortunate because of long-term damages. The long-term effects of children in low income families include developmental, psychological and emotional effects.
The paper will calculate the financial ratios of company that will be interpreted with the implications of ratios. Moreover, the paper will describe the indicators of fraudulent reporting. Discussion Purpose of Income Statement It is also called profit and loss statement or income or expense statement. The main purpose of income statement is to indicate managers and investors whether the organisation was cost-effective
1) Sources of capital to be included when estimating Harry Davis’s WACC: The WACC is primarily used for making long-term investment decisions that is capital budgeting. The WACC should include the types of capital used to pay for long-term assets like as long-term debt, preferred stock and common stock. Short-term capital consists of account payable, accruals, short-term debts and note payable.
Insurance is the equitable transfer of risk of a loss, from one entity in exchange of money. In today’s world, it is difficult to find a person who is not fully insured. Thus, insurance is a means to manage possible risks, as no one wants to face any type of a loss. It is evident that the insurance companies are now profiting to a greater extent since everyone wants to be on a safer side and avoid risks. This has in turn helped in the economy’s development and growth.