Reference no: EM132875452

-What adjustment is needed when a check that was written in a previous month appears on the current month's bank statement?

-Should receipts be recorded using the date the money was received or the date the money was deposited in the bank accounts?

-How many days after a month ends should the bank reconciliation be done?

-What journal entries are prepared in a bank reconciliation?

-When does a negative cash balance appear on the balance sheet?

- When valuing the shares of the company, I calculate the present value of the expected cash flow to shareholders and I add to the results obtained cash holding and liquid investments. Is that correct?

- Our company (A) is going to buy another company (B). We want to value the shares of B and, therefore, we will use three alternatives of the structure Debt/shareholders' equity so as to obtain the WACC :1) present structure of A;2)Present structure of B, and 3)structure used by A to finance the acquisition B' shares . We will value the company B by applying these three alternative and then take as a reference the average of the results. is it correct?

- The market risk premium is the difference between historical returns on the stock market and the return on bonds. But how many years does "historical" imply? shall we use arithmetic means or geometric one?

- Discuss the following views;i) The reasonable thing to do is to finance reasonable assets (collections, inventories) with short term text and fixed assets with long term debt.

-ii) A company creates value for its shareholders during a year if it distributes dividends or if the quotation of the shares increases