Game of Intellect

Page no : 7

shikha nair (ca final student) (34 Points)
Replied 25 June 2008

ALTERNATIVE MANAGEMENT

Alternative management is based on market declines,volatility of volatility, liquidity, time value and abnormal valuations, rather than on rising prices. An example of alternative management is the hedge fund.


CA Annie (Chartered Accountant ) (747 Points)
Replied 26 June 2008

Real rate of return:

The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects. This method expresses the nominal rate of return in real terms, which keeps the purchasing power of a given level of capital constant over time.

 


Rushikesh (Chartered Accountant - Manager Finance)   (2375 Points)
Replied 27 June 2008

economic exposure
any type of risk arising from movements in real exchange rates



(Guest)

Hurdle Rate

A target rate. For example, companies may decide to invest only in projects that generate an internal rate of return that is in excess of 12%. The 12% figure becomes the hurdle rate.


Rushikesh (Chartered Accountant - Manager Finance)   (2375 Points)
Replied 27 June 2008

 

horizontal spread

A spread that is made by buying and selling two options that differ only on their exercise date.



CA Annie (Chartered Accountant ) (747 Points)
Replied 27 June 2008

Human resource management:

HRM is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business

 

 



(Guest)

estimates

Approximate amounts. Accountants use estimates for depreciation expense, warranty expense, bad debt expense, monthly accruals for utilities, bonuses, income taxes, etc


CA Annie (Chartered Accountant ) (747 Points)
Replied 28 June 2008

Hidden reserve:

It is the understatement of owners' equity or net worth.This understatement can arise either from the undervaluation of assets or from a complimentary overaccrual of liabilities.


CA Naveen Kumar Agrawal (Chartered Accountant / MBA)   (939 Points)
Replied 29 June 2008

Employer : A person who hires on some remuneration to other persons (as his employees) to provide their services for his business/profession.


CA Annie (Chartered Accountant ) (747 Points)
Replied 30 June 2008

Letter Of Credit (L/C)

It is a financial instrument normally issued by the buyer's bank in which the bank promises to pay money up to a stated amount for a specified period for merchandise when delivered. It substitutes the bank's credit for the buyer's and eliminates the seller's risk. It is used in international trade.



CA Naveen Kumar Agrawal (Chartered Accountant / MBA)   (939 Points)
Replied 30 June 2008

Events Occuring after tha Balance Sheet Date:

Post balance sheet events are those that occur between the balance sheet date and the date on which the financial statements are approved. These fall under two broad categories:

i.> Events that necessitate adjustment of assets & liabilities, and

ii.> Other events, financial impact of which requires a disclosure.


Rushikesh (Chartered Accountant - Manager Finance)   (2375 Points)
Replied 30 June 2008

LIBOR
The LIBOR is the rate offered by London banks for deposits by other banks in the eurocurrency markets (1-12 months). It is calculated by the British Bankers Association and is announced daily at 11 o'clock in London.



(Guest)

horizontal analysis

One component of financial statement analysis. This method involves financial statements reporting amounts for several years. The earliest year presented is designated as the base year and the subsequent years are expressed as a percentage of the base year amounts. This allows the analyst to more easily see the trend as all amounts are now a percentage of the base year amounts


CA Annie (Chartered Accountant ) (747 Points)
Replied 30 June 2008

Hurdle rate:

It is used in capital budgeting. Hurdle rate is the required rate of return on a long-term investment opportunity. A proposal would be accepted when the expected rate of return exceeds the hurdle rate. The hurdle rate should equal the incremental cost of capital.



CA Annie (Chartered Accountant ) (747 Points)
Replied 02 July 2008

Embezzlement

It is the theft of money or property from a business by an individual in whose custody it has been placed. An example is a bookkeeper who steals from the petty cash fund.



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