Business Information Management Academy of Finance BIM Exam Review February 2012 Exam Structure Total 2 hours 15 minutes Total 3 questions to answer 2 questions of a “calculative” nature 1 question of a “theoretical” nature, where you will have to explain something in words Closed-book (no textbooks, notes, computers, or cell phones allowed) You will need a non-programmable calculator Academy of Finance MBA Program - Business Information Management 2 Study material Lecture
Words: 1356 - Pages: 6
versus solvency and liquidity dilemma facing bank management. Profitability One way for a bank to increase expected profits is to take on more risk. However, this can jeopardize bank safety. For a bank to survive, it must balance the demands of three constituencies which are the shareholders, depositors, and regulators, each with their own interest in profitability and safety. Bank solvency A commercial bank has the capital-to-total-assets ratio of approximately 9%. It means that the owners
Words: 553 - Pages: 3
total of all current asset, while net working capital is the difference between current asset and current liabilities. IMPORTANCE OF WORKING CAPITAL * The business can avail the advantages of cash discount facilities offered by its supplier. * It creates a sense of security and confidence in the management of officials of the company. * It enhances the liquidity, solvency, creditworthiness and reputation of the firm. * It increases operating efficiency of fixed assets because of their
Words: 2150 - Pages: 9
Westerfield, J. Jaffe, and B. Jordan (2013) Corporate Finance: 2nd European Edition. McGraw-Hill. ISBN-13: 9780077154592. Structure • Plenary lectures • Workshops • BONUS SYSTEM © 2012 Erasmus Universiteit Rotterdam / Rotterdam School of Management and KPMG Accountants N.V., registered with the trade register in the Netherlands under number 33263683, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
Words: 2963 - Pages: 12
Financial Management Project- Final Submission Working Capital Management of Maruti and its comparison to industry average Group-2: Shailesh Kumar Nirala- 36C Arjun Yadav- 9C Ajay Kumar Singh- 2C Ashley Thomas Abraham- 11C Navneet Menon- 23C Shanti Prakhar Awasthi- 38C Profile/Brief History The old logo of Maruti Suzuki India Limited on the left. Later in the new logo (on the right) the logo of
Words: 2182 - Pages: 9
to external parties [managerial accounting is to use this information internally]. Financial statements are management’s report to owners. 3 profit-seeking entities: Sole proprietorship simple to establish, owner controlled Unlimited liability (no legal separation). All profits and losses belong to owner, report income on tax returns. Business ends if owner dies, can sell it. Easy and inexpensive to operate. No reporting requirements. Partnership simple to establish, shared
Words: 3631 - Pages: 15
* Lending – lend money to company in the form of bonds, loan conditions such as interest rates, security, other conditions Contracting – legally binding obligation that gives party the right to demand the performance of whatever promised * management (agency problem) – information asymmetry, act in self interest * debt Stewardship – compliance with delegated authority Agency Cost of equity Perquisite consumption – Manager give themselves more luxury than would seem reasonably from the
Words: 4023 - Pages: 17
assumption. In some circumstances, assets and liabilities may be shown at their historical cost, as if there had been no change in value since the date of acquisition. The balance sheet value of the item may therefore differ from the "true" value. While historical cost is criticised for its inaccuracy (deviation from "true" value), it remains in use in most accounting systems. Various corrections to historical cost are used, many of which require the use of management judgment and may be difficult to
Words: 1987 - Pages: 8
Working Capital Management WORKING CAPITAL - Meaning of Working Capital Capital required for a business can be classified under two main categories via, 1) Fixed Capital 2) Working Capital Every business needs funds for two purposes for its establishment and to carry out its day- to-day operations. Long terms funds are required to create production facilities through purchase of fixed assets such as p&m, land, building, furniture, etc. Investments in these assets represent that
Words: 6343 - Pages: 26
Functions and powers of the FRC (s. 225 of ASIC Act )---Provide broad oversight of the process for setting accounting standards//Appoint members of the AASB//Approve and monitor the AASB’s priorities, business plan, budget and staffing//Give the AASB directions, advice or feedback on matters of general policy//No power to direct AASB regarding development of particular standards//No power to veto a standard//Powers expanded in 2003 to include overseeing the activities of AUASB (ASIC) is responsible
Words: 1733 - Pages: 7
