Finance Questions

Someone who receives money in exchange for a promise to pay it back later is called a borrower1, and the person making the loan is the lender.

1. A fixed budget is established for a specific level of activity whereas flexible budget is prepared for various levels of activity.

2. Fixed budget cannot be changed after the period commences, whereas a flexible budget can be changed after the period commence.

3. Fixed budget is more suitable for fixed expenses whereas flexible budget takes both fixed as well as variable expenses in account.

4. Fixed budget includes only fixed costs, whereas a flexible budget includes fixed costs, variable costs and semi variable costs.

5. Fixed budget is mainly used in planning stage whereas flexible budget is used in controlling stage.

Comprehensive income is the sum of net income and other items that must bypass the income statement because they have not been realized, including items like an unrealized holding gain or loss from available for sale securities and foreign currency translation gains or losses.

 The primary reason to issue stock is to raise money to start and maintain an ongoing business.

Other Reasons::

The reasons that a company might want to raise money by issuing stock are:

• To develop new products

• To buy more advanced equipment

• To pay for new buildings and inventories

• To hire more employees

• To provide for a merger or acquisition

• To decrease debt

• To give company owners greater flexibility

• To place a value on the company.

Insurance can help you to protect your properties and assets like home, car, stocks,... against unexpected accidents.

Demand is said to be inelastic, when the demand for the good doesn't change much or it is negotiable when the price of the good changed.

RBI issued currency notes under Fixed Minimum Reserve System.

A Bank Reconciliation Statement is a statement prepared periodically by a customer to explain the divergence (difference) between the bank balance as per cash book and the bank balance as per Pass Book. It clearly shows the two differing balances and the outstanding items which causes the balances to disagree.

The objective of preparing such a statement is to know the causes of differences between the two balances and pass necessary correcting or adjusting entries in the books of the firm. But it is to be noted that some differences are automatically adjusted. For example - A cheque that has been sent for collection, but not yet collected, causes a difference between the balance as shown by the pass book and the balance as shown by the cash book, but no adjusting entry is required in the cash book for such a difference because, the bank will credit the firm’s account as soon as the cheque is collected.