Define forward contract.

Q: Define commodity IT asset.

A:

Q: Define stand by spares.

A: Current assets:   The assets of the company that cannot be converted into cash within a period of…

Q: Define duration (bond)

A: Bond duration: It is defined as the sensitive interest rate to the time of repayment of the…

Q: Define carried interest

A: Carried interest: It could be a portion of any profit that private equity and hedge reserves common…

Q: artners' Agreement

A: Partnership according to section 3 (1) of the partnership act 1961 is known as the relation between…

Q: Allocate a contract’s transaction price to multiple performance obligations.

A:

Q: Define Puttable bond.

A: Puttable bond: A puttable bond is a kind of bond that offers the right to the bond holder, but not…

Q: Explain Concept Syndications?

A: Syndication is a process by which small lenders come together and they lend the money to a big…

Q: Describe Trade-Off theory.

A: Trade-Off theory suggests that there is an optimal capital structure that maximizes the value of the…

Q: Define covenant

A: Answer: Covenant is a way to regulate the usage of property. This is an agreement made in the…

Q: Define bill-and-hold arrangement with example.

A: Bill on hold: Bill on hold transaction specifies that shipping of the product is not done by the…

Q: Define Franchise.

A: There are several forms of business like the sole proprietorship, partnership and corporation which…

Q: Explain the term Voluntary Conveyance

A: Voluntary Conveyance: Voluntary conveyance is defined as an elective transmission of title from one…

Q: Explain Pass-Through Rates, Yields, and Servicing Fee?

A: Pass-through rateA rate of interest being paid to the investors on the securitized asset after…

Q: Define T-bond

A: A bond is a long-term financial instrument issued by the company to raise funds from the public. The…

Q: Define the term contract assets.

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: Define ask quote (or ask price)

A: The recent price of stock or security at which stock or security is purchased and sold in the stock…

Q: Explain payment (PMT)

A: Payment is the transfer of money, goods, or services in exchange for goods and services in…

Q: Explain the following terms, Bid Rate and Ask rate

A: Bid and Ask rates are two common rates used in financial markets especially in the foreign exchange…

Q: Define purchase option.

A:

Q: Define bond

A: Bonds are an asset. Investors in bonds lend money to the government or business money for a specific…

Q: Mutual agency is defined

A: In a partnership, two or more parties agree to operate and manage a business and share the profits…

Q: Define commitment fee

A: In financial terms, commitment is a promise made by lender to borrower to provide loan by specific…

Q: Define Serial bond.

A: Define serial bond, Under conventional bond we pay the bond on maturity. what its consequence at…

Q: arise by ratificatio

A: Agency by Ratification is defined as where someone approves or accepts of some one else's deeds on…

Q: Define net pay.

A: Payroll: Payroll refers to the total amount that is required to be paid by the company to its…

Q: Explain Bill-and-hold concept.

A:

Q: Define convertible security

A: A convertible security is a security that can be changed into another form of investment. The most…

Q: Define bid quote (or bid price)

A: The recent price of stock or security at which stock or security is purchased and sold in the stock…

Q: Define Long-term contract

A: Meaning of Contract: An agreement between two private parties that creates mutual legal obligations.…

Q: Define T-bill

A: A Treasury bills which are also known as T-Bills are mainly issue by Government of country. These…

Q: What is a performance obligation? Under what conditionsdoes a performance obligation exist?

A:

Q: Explain consignment arrangement with example.

A: Goods in transit: Goods in transit can be described as the inventories which are shipped by the…

Q: Differentiate and elaborate bid rate and offer rate.

A: Following is the answer to the question.

Q: Define Advance payments.

A: Advance Payment : Advance Payment is a payment made before goods or services are provided. Advance…

Q: What is a performance obligation?

A: Definition: Performance obligation: Performance obligation is a promise to transfer goods or…

Q: Define underwriting syndicate

A: An underwriting syndicate is headed by a bank known as the lead underwriter. It is a group of banks…

Q: What is negotiated deals (security offerings)?

A: Negotiated deals are usually referred to in the context of fixed-income securities. The parties…

Q: Define broker

A: Broker is referred as a person or a firm, who used to arrange the transactions between the seller…

Q: Define contra account

A: Financial Accounting: Financial Accounting can be defined as an activity of recording financial…

Q: Define Premium.

A: Book value per share: This is a financial ratio which measures the value of shareholders’ equity…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.