What is Accrual Bond?-What is Accumulated Depreciation?-What is Acid Test Ratio?-What is ACU?-What is the Act of State Doctrine?-What is Ad valorem/valorum?-What is additional Paid in Capital?


Q.What is Accrual Bond?

A. A bond on which interest accrues, but is not paid to the investor during the time of accrual. The amount of accrued interest is added to the remaining principal of the bond and is paid at maturity.  


Q. What is Accumulated Depreciation?

A. Total depreciation pertaining to an assets or group of assets from the time the assets were place in services until the date of the financial statement or tax return. This total is contra account to the related asset account.  

Q. What is Acid Test Ratio?

A. Ratio of liquid assets(that is current assets less stocks) to current liabilities , giving an indication towards solvency of a company. This ratio arises from the basic desire to measure a business ability to meet its current obligations through the use of its current assets as does the current ration. Acid-Test ratio is also called the “Quick Ratio”.

Q. What is ACU?

A. ACU stands for Asian Clearing Union. The central of Banks of Bangladesh, Burma, India,Iran, Nepal, Pakistan & Srilanka under an agreement established the above clearing system for settling payments for current international transaction among the member countries on Multilateral basis. Under this mechanism all international monetary transaction between them excluding those covered by Aid/Loan/Credit shall be either in home currency or in the currency of the concerned member country or in AMU(Asian Monetary Unit), the approved currency unit of the mechanism, the value of which is equivalent to one SDR(Special Drawing Right) allocated by the IMF.

Q. What is the Act of State Doctrine?

A. This doctrine says that a nation is sovereign within its own border and its domestic action may not be question in courts of another nation.

Q.What is Ad valorem/valorum?

A. Latin phrase meaning “ according to value” showing that a tax is calculated as a percentage of the value of the goods taxed.

Q. What is additional Paid in Capital?

A. Amount paid for stock in excess of its par value or stated value. Also, other amount paid by the stockholders and charged to equity account other than capital stock.

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