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Frequency Refers to

question 140

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Frequency refers to

Understand the impact of credit policies on the cash cycle and operating cycle of a business.
Comprehend the terms of sale and the effects of credit policy decisions on a firm’s financials, including net present value calculations.
Understand sophisticated credit evaluation techniques like Multiple Discriminant Analysis (MDA) and their application.
Familiarize with the definitions and applications of just-in-time inventory (JIT) and spread in financial management.

Definitions:

Temporary Differences

Differences between the carrying amount of an asset or liability in the balance sheet and its tax base that will result in taxable or deductible amounts in future periods.

Deferred Tax Liabilities

Future tax obligations that arise due to temporary differences between the book value and tax value of assets and liabilities.

Deferred Tax Assets

Financial items on the balance sheet representing taxes paid or carried forward but not yet realized on the income statement.

Permanent Difference

A discrepancy between the tax treatment and accounting treatment of transactions and events that will not reverse in the future.

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