Why is the capital adequacy ratio important to shareholders?

June 30, 2024 No Comments

A: The capital adequacy ratio (CAR) measures the amount of capital a bank retains compared to its risk. National regulators must track the CAR of banks to determine how effectively it can sustain a reasonable amount of loss. National regulators must also determine if a

Why is the capital adequacy ratio important to shareholders?

July 7, 2024 No Comments

Why is the capital adequacy ratio important to shareholders?

July 9, 2024 No Comments

Why is the TTM (trailing twelve months) important in finance?

July 9, 2024 No Comments

A: Using trailing 12-month (TTM) figures is an effective way to analyze the most recent financial data in an annualized format. Annualized data is important because it helps neutralize the effects of seasonality and dilutes the impact of non-recurring abnormalities in financial results, such as

Why is work in progress (WIP) considered a current asset in accounting?

June 30, 2024 No Comments

A: Accountants consider work in progress (WIP) to be a current asset because it is a type of inventory asset. Accountants consider inventory assets to be current, because they are reasonably expected to be converted into cash within one year’s time. Some accountants distinguish between

Why is work in progress (WIP) considered a current asset in accounting?

July 7, 2024 No Comments

Why is work in progress (WIP) considered a current asset in accounting?

July 9, 2024 No Comments

Why should sunk costs be ignored in future decision making?

June 30, 2024 No Comments

A: A sunk cost is a cost that cannot be recovered or changed and is independent of any future costs a business may incur. Since decision-making only affects the future course of business, sunk costs should be irrelevant in the decision-making process. Instead, a decision

Why should sunk costs be ignored in future decision making?

July 7, 2024 No Comments

Why should sunk costs be ignored in future decision making?

July 9, 2024 No Comments

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