Example on financial and managerial accounting, Financial Accounting

Assignment Help:

Mr N. M. is lucky to have a lottery prize of Rs 20 million. He does not have any liability and does not have any claimant over this money. He has the following alternatives:

(i) Give this money to his friend who agrees to pay Rs 20 million at the end of 1st year and Rs 5 million at the end of 2nd year;

(ii) Give this money to his brother who agrees to pay Rs 10 million per annum for three years.

(iii) Invest the money in a business with an expectation to get Rs 5 million every year for 15 years.

(iv) Exchange this money with the money which his friend Shyam is to inherit in 20 years. Shyam expects to inherit Rs 50 million.

1. In your views, which alternative is more profitable?

2. What additional information is required in order to take a decision?


Related Discussions:- Example on financial and managerial accounting

Fixed interest securities-accounts under trustee , Fixed Interest Securitie...

Fixed Interest Securities No advice in writing is required before an investment in fixed interest securities is made. Government Securities. Treasury Bills. Fixed

Describe how it is helpful for management decision makings, Question: (...

Question: (a) Describe how cost concepts and behavior can be important to Management. (b) What do you meant by "flexing" the Budget? Describe the importance of flexible bud

Google, how do i find info about google inc

how do i find info about google inc

Vital essential and desirable analysis, VED Analysis: VED i.e. Vital, E...

VED Analysis: VED i.e. Vital, Essential and Desirable analysis is a technique employed for spare part inventory analysis and is broadly used in the automobile industry particul

The functional currency method-foreing branches, The functional currency me...

The functional currency method (formerly temporal method) Under this method, the branch is considered to be an extension of the head office and this is reflected by the trading

Estimation of current cost of debt, Q. Estimation of current cost of debt? ...

Q. Estimation of current cost of debt? The debenture will be used to estimation the current cost of debt as it is the only marketable debt. The present market value of the debe

Partnership accounting, How does ordinary shares and preference shares incl...

How does ordinary shares and preference shares included in the account

Examine the financial statements, Your firm has been hired to examine the f...

Your firm has been hired to examine the financial statements of Bonanza Development Corp. for possible irregularities.  As part of this task, you reviewed certain land transactions

Types of gift by way of a will-executorship laws and account, TYPES OF GIFT...

TYPES OF GIFT BY WAY OF A WILL (a) A special (or specific) legacy is a testamentary gift of a particular part of the property of the testator, which identifies that part by a s

Property, Hi! Here are the case: Acquisition of Assets: The cost method ...

Hi! Here are the case: Acquisition of Assets: The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the authority. Cost is

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd