ACCOUNTANCY WITH SUGGESTION AND ANSWER 2024

 SBSIRCOMMERCE PRESENT 🙏🙏🙏

Accounts Suggestions  Wbchse

            CLASS xii 2024

1)Differences between profit & Loss Account and profit & Loss Appropriation Account?

2)What we the consequences of Non-Registration of Partnership deed?

3 A)Short Note

 i)Security Premium ii) Subscribed capital iii) authorized capital

3B) Distinguish between  sacrificing  Ratio & Gaining Ratio

                  OR

B)treatment of Goodwill at the time of of admission / Retirement of a partner

4) A)Distinguish between Equity Shares Preference Share share 

  B)  Short Note

 I)Surrender of shares  ii) Bonus Share  iii)forfeiture of shares

5) A)Short Note = 

a) Debt Equity Ratio

b) Liquidity Ratio

5B)Write four objectives of  Financial Statement Analysis 

 6)Discuss the objectives of cash flow Statement 

 

7) limitations of cash Flow Statement

8) Differences between cash flow statemen and Cash Book?

9)Give  Example of cash and cash Equivalent 

Mention the activities under which the transactions will appear in cash flow statement?

10) what are the purposes  for  which Security Premium  can be utilized by Company

 11)Differences between fixed capital Account and Fluctuating capital Account?

       ----------------*************------------------****
Answers to question number 1 to 5 of the suggestion have already been published

Q6)Discuss the objectives of cash flow Statement 

**Introduction:**

1. **Understanding Liquidity:**

   - The cash flow statement serves as a crucial financial document that provides insights into a company's liquidity and cash position.

   - It distinguishes between cash inflows and outflows, offering a snapshot of how effectively a business manages its cash resources.

2. **Operating, Investing, and Financing Activities:**

   - The statement categorizes cash flows into three main activities: operating, investing, and financing.

   - Operating activities involve day-to-day business transactions, investing activities relate to asset transactions, and financing activities focus on changes in equity and debt.

3. **Complementing the Income Statement:**

   - While the income statement shows profitability, the cash flow statement complements it by revealing the actual cash movements, providing a more holistic financial picture.

**Objectives:**

1. **Cash Generation Assessment:**

   - Evaluate the company's ability to generate positive cash flows from its core operations, indicating sustainable business practices.

2. **Investment and Capital Expenditure Analysis:**

   - Assess the allocation of funds towards investments and capital expenditures to gauge future growth prospects and asset management efficiency.

3. **Debt and Equity Positioning:**

   - Examine how a company manages its debt and equity, understanding the sources and uses of funds to make informed decisions about its financial structure.

4. **Operating Efficiency and Profitability:**

   - Analyze the relationship between net income and cash generated from operating activities to identify any disparities and assess the company's operational efficiency.

5. **Risk Management:**

   - Identify potential liquidity issues by examining changes in cash flows, helping stakeholders anticipate and manage financial risks effectively.

**Conclusion:**

1. **Holistic Financial Insight:**

   - The cash flow statement, when analyzed alongside other financial statements, offers a comprehensive view of a company's financial health.

2. **Decision-Making Tool:**

   - Investors, creditors, and management use the cash flow statement to make informed decisions about investments, loans, and operational strategies.

3. **Enhancing Transparency:**

   - By providing transparency into cash movements, the statement contributes to financial transparency and accountability, fostering trust among stakeholders.

In summary, the cash flow statement is a vital tool that goes beyond just profitability, offering a nuanced understanding of a company's financial dynamics, aiding in effective decision-making and risk management.

7) Discuss the Limitations of cash flow statement

1. **Non-Cash Items:** Cash flow statements don't provide a complete picture as they focus on cash transactions, excluding non-cash items like depreciation.

2. **Timing Issues:** The statement may not accurately reflect the timing of cash flows, especially when there are significant delays between recognizing revenue or Q8expenses and actual cash movements.

3. **Lack of Profitability Information:** Cash flow statements alone don't reveal a company's profitability. A business might generate positive cash flow but still incur losses due to non-cash expenses.

4. **Subjectivity in Operating Activities:** Classifying certain activities as operating, investing, or financing can be subjective, leading to potential misinterpretation.

5. **Ignores Changes in Working Capital Quality:** Cash flow statements may not distinguish between positive and negative changes in working capital, potentially overlooking liquidity issues.

6. **Omission of Future Liabilities:** Future obligations, such as long-term debt and lease payments, are not always fully captured, impacting the assessment of a company's overall financial health.

7. **External Factors:** External influences, like changes in economic conditions or industry trends, are not directly reflected in the cash flow statement, limiting its predictive value in some contexts.

Q8) Distinguish between Cash Flow statement and Cash Book

1. **Purpose:**

   - **Cash Flow Statement:** Summarizes the inflow and outflow of cash over a specific period, categorizing activities into operating, investing, and financing.

   - **Cash Book:** Records daily transactions involving cash, providing a detailed account of cash receipts and payments.

2. **Scope:**

   - **Cash Flow Statement:** Covers a broader financial overview, showing the net change in cash and cash equivalents.

   - **Cash Book:** Focuses on specific cash transactions, detailing each transaction as it occurs.

3. **Timeframe:**

   - **Cash Flow Statement:** Typically prepared for a specific period (e.g., monthly, quarterly, annually).

   - **Cash Book:** Records transactions in real-time as they happen.

4. **Financial Activities:**

   - **Cash Flow Statement:** Classifies activities into operating (day-to-day transactions), investing (asset-related transactions), and financing (capital-related transactions).

   - **Cash Book:** Registers all cash transactions, without specific categorization into operating, investing, or financing activities.

5. **Format:**

   - **Cash Flow Statement:** Presented in a structured format, usually adhering to accounting standards.

   - **Cash Book:** Can have various formats depending on the organization's accounting system, but it's often a ledger-like record.

6. **Preparation Frequency:**

   - **Cash Flow Statement:** Periodically prepared, reflecting a summary of cash movements.

   - **Cash Book:** Updated daily or as transactions occur.

7. **Audience:**

   - **Cash Flow Statement:** Primarily for external stakeholders, such as investors, creditors, and analysts.

   - **Cash Book:** Used internally by accountants and financial personnel for day-to-day financial management.

8. **Detail Level:**

   - **Cash Flow Statement:** Provides a summarized view, focusing on overall cash movements.

   - **Cash Book:** Offers a detailed, transaction-by-transaction breakdown.

Remember, while the Cash Flow Statement is a formal financial statement prepared according to accounting standards, the Cash Book is more of a working document used for real-time financial tracking.।

9)Give  Example of cash and cash Equivalent 

Mention the activities under which the following transactions well appear in cash flow statement

Ans.Example of cash and cash equivalents:

Cash on hand

Bank overdrafts (if repayable on demand)

Activities under which the following transactions appear in the cash flow statement:

Operating Activities:

Cash receipts from sales

Cash payments to suppliers and employees

Investing Activities:

Cash payments for the purchase of property, plant, and equipment

Cash receipts from the sale of investments

Financing Activities:

Cash received from issuing new bonds

Cash paid for dividends to shareholders

10) what are the purposes  for  which Security Premium  can be utilized by Company

Ans,.Security premiums in a corporate context can be utilized for various purposes, including:

1. **Risk Mitigation:** Use security premiums to fund measures that reduce risks, such as cybersecurity enhancements, insurance coverage, or disaster recovery plans.

2. **Employee Training:** Invest in training programs to educate employees on security protocols and practices, reducing the likelihood of security breaches due to human error.

3. **Infrastructure Upgrades:** Allocate funds to upgrade physical and digital infrastructure to meet higher security standards, ensuring the protection of sensitive information.

4. **Compliance Measures:** Implement measures to comply with industry-specific regulations and standards, safeguarding the company against legal and financial repercussions.

5. **Incident Response:** Establish a fund for responding to security incidents promptly and effectively, including investigation, remediation, and communication efforts.

6. **Security Audits and Assessments:** Conduct regular security audits and assessments to identify vulnerabilities and weaknesses, then use the premium to address and rectify these issues.

7. **Security Software and Tools:** Invest in cutting-edge security software and tools to detect, prevent, and respond to potential threats in real-time.

8. **Third-Party Security Services:** Engage external security experts or services to conduct periodic evaluations and provide insights to strengthen the company's overall security posture.

9. **Data Encryption:** Implement robust data encryption mechanisms to protect sensitive information both in transit and at rest.

10. **Employee Benefits:** Offer security-related incentives or benefits to employees to encourage adherence to security policies and practices.

Remember, the specific utilization of security premiums will depend on the company's risk profile, industry, and overall security strategy.

11)Differences between fixed capital Account and Fluctuating capital Account?

Ans. Here's a point-wise elaboration of the differences between fixed capital accounts and fluctuating capital accounts:

1. **Nature of Investment:**

   - **Fixed Capital Account:** Represents long-term investments in assets that have a relatively stable value over time, such as machinery, buildings, and land.

   - **Fluctuating Capital Account:** Involves short-term investments that may vary in value more frequently, like stocks, bonds, and other market-based instruments.

2. **Duration of Investment:**

   - **Fixed Capital Account:** Involves investments intended to be held for an extended period, often years, as these assets are expected to provide long-term value.

   - **Fluctuating Capital Account:** Involves investments that can be bought and sold more readily, allowing for shorter holding periods based on market conditions.

3. **Risk and Return:**

   - **Fixed Capital Account:** Generally, investments in fixed capital carry lower liquidity but may offer more stability and potentially predictable returns over the long term.

   - **Fluctuating Capital Account:** Typically involves higher liquidity and potential for quick returns but comes with higher market risk and volatility.

4. **Asset Types:**

   - **Fixed Capital Account:** Comprises tangible assets used for production or business operations, contributing to the productive capacity of the enterprise.

   - **Fluctuating Capital Account:** Encompasses financial assets like stocks, bonds, derivatives, reflecting ownership in companies or debt instruments.

5. **Accounting Treatment:**

   - **Fixed Capital Account:** Reflects the historical cost of acquiring fixed assets, and their depreciation is recorded over time to allocate the cost.

   - **Fluctuating Capital Account:** Values are marked-to-market regularly, reflecting current market prices, which can lead to more frequent changes in the account's value.

6. **Purpose of Investment:**

   - **Fixed Capital Account:** Primarily focused on supporting the core operations and growth of the business by acquiring and maintaining essential assets.

   - **Fluctuating Capital Account:** Often driven by the goal of capital appreciation, income generation, or speculation based on market trends.

7. **Ownership Representation:**

   - **Fixed Capital Account:** Represents ownership in physical assets and infrastructure of the business.

   - **Fluctuating Capital Account:** Represents ownership in financial instruments, reflecting a stake in the performance of companies or markets.

Understanding these distinctions can help in forming a balanced investment portfolio that aligns with both short-term and long-term financial goals.

CLASS XII ACCOUNTANCY THEORY

 4 A) Distinguish between Equity Shares and Preference Shares pointwise:

Equity Shares:

1. **Ownership:** Equity shares represent ownership in a company.

2. **Voting Rights:** Equity shareholders usually have voting rights in company decisions, allowing them to participate in corporate governance.

3. **Dividends:** Dividends for equity shareholders are not fixed and depend on the company's profitability and the decision of the board of directors.

4. **Risk and Reward:** Equity shareholders bear higher risk compared to preference shareholders but also have the potential for higher returns if the company performs well.

5. **Residual Claim:** In the event of liquidation, equity shareholders have a residual claim on the assets after satisfying the claims of preference shareholders and creditors.

Preference Shares:

1. **Ownership:** Preference shares also represent ownership, but they do not usually carry voting rights.

2. **Dividends:** Preference shareholders are entitled to a fixed rate of dividend, and this takes precedence over the dividend for equity shareholders.

3. **Priority in Repayment:** In the event of liquidation, preference shareholders have a higher claim on assets compared to equity shareholders, but they are subordinate to creditors.

4. **Redemption:** Some preference shares come with a redemption feature, allowing the company to buy back the shares after a specified period.

5. **Risk and Reward:** Preference shareholders bear lower risk compared to equity shareholders but receive a fixed return, limiting their potential for higher returns compared to equity shareholders.

4)B) Short Note:

I)Surrender of shares

ii)Bonus share 

i) Surrender of Shares:

Surrender of shares occurs when a shareholder willingly returns their shares to the company. This could be due to various reasons, such as a desire to exit the company or a part of strategic restructuring. Unlike selling shares on the open market, surrendering shares involves direct return to the issuing company.

ii) Bonus Share:

Bonus shares are additional shares given to existing shareholders without any additional cost. It's a way for a company to distribute its profits or reserves among shareholders in the form of shares. While this doesn't increase a shareholder's proportional ownership, it enhances the overall number of shares they hold.

c) Forfeiture of Shares:

Forfeiture of shares happens when a shareholder fails to meet certain obligations, typically related to payment. If a shareholder doesn't pay the calls (unpaid portion of the share price), the company may forfeit their shares. This means the shares are taken back by the company, and the shareholder loses ownership rights.

Q5a) Short Note

   a)Debt Equity Ratio

   b) b) **Liquidity Ratio:**

a) Debt Equity Ratio:

The Debt Equity Ratio is a financial metric that assesses a company's proportion of debt relative to equity. It's calculated by dividing total debt by shareholders' equity. This ratio helps gauge a firm's financial leverage and risk. A higher ratio indicates higher financial risk, as the company relies more on borrowed funds.

b) **Liquidity Ratio:**

Liquidity ratios evaluate a company's ability to meet its short-term obligations with its liquid assets. Common examples include the Current Ratio and Quick Ratio. These ratios provide insights into a company's short-term financial health and its capacity to cover immediate liabilities using assets that can be quickly converted to cash.

Q5b)Write four objectives of  Financial Statement Analysis

1. **Assessing Financial Health:** One objective is to evaluate the financial health and stability of a company by analyzing its financial statements. This involves examining key indicators such as liquidity, solvency, and profitability.

2. **Facilitating Decision-Making:** Financial statement analysis aims to provide valuable information for decision-making. This includes assisting investors in making investment decisions, creditors in assessing creditworthiness, and management in strategic planning.

3. **Comparative Performance Evaluation:** Another objective is to compare the financial performance of a company over time or against industry benchmarks. This helps identify trends, strengths, and areas for improvement, aiding stakeholders in making informed judgments.

4. **Predicting Future Performance:** Financial statement analysis seeks to provide insights into a company's future prospects. By examining historical data and trends, analysts aim to make reasonable predictions about the company's future financial performance

Class 12 Accountancy Questions with Answer

 Q3A) SHORT NOTE

I)Securities Premium -Securities Premium refers to the amount raised by a company through the sale of its shares at a price higher than their face value. It represents the excess amount investors are willing to pay for shares, reflecting confidence in the company's potential. This premium is not distributable as dividends but is used for various purposes such as issuing bonus shares, writing off preliminary expenses, or offsetting future losses.

ii) Subscribed capital

Subscribed capital is the portion of a company's authorized share capital that has been agreed to be purchased by investors. It is essentially a commitment from investors to buy a certain number of shares at a certain price. Subscribed capital is recorded in the company's balance sheet as a liability, as it represents an obligation to the investors.

iii) Authorized capital

Authorized capital is the maximum number of shares that a company is allowed to issue, as stated in its memorandum of association or articles of incorporation. It is not the same as issued capital, which is the number of shares that have actually been issued to investors. Authorized capital can be increased or decreased through a shareholder vote.

3B) Distinguish between sacrificing Ratio & Gaining Ratio 

Ans.Here is a comparison of sacrificing ratio and gaining ratio:

Definition

SACRIFICING RATIO 

The ratio in which existing partners give up a portion of their profit-sharing ratio in favor of a new or incoming partner.

GAINING RATIO

The ratio in which existing partners acquire a portion of the profit-sharing ratio from a retiring or deceased partner.

When used

  SACRIFICING RATIO

When a new partner is admitted to the firm.

GAINING RATIO

When a partner retires or dies and leaves the firm.

Effect on existing partners

Reduces their profit-sharing ratio.

Increases their profit-sharing ratio.

Calculation

Sacrificing Ratio = Old Ratio - New Ratio

Gaining Ratio = New Ratio - Old Ratio

3B OR)

Q3B) Treatment of Goodwill at the time of Admission/Retirement of a partner

Treatment of Goodwill at the Time of Admission/Retirement of a Partner

The treatment of goodwill at the time of admission or retirement of a partner depends on whether the goodwill is already recorded in the firm's books or not. Here's a breakdown of both scenarios:

1. Goodwill not recorded in the books:

Admission of a partner:

In this case, the incoming partner brings in an additional amount, known as "goodwill premium," to compensate the existing partners for their share in the future profits arising from the established goodwill.

This premium is credited to the existing partners' capital accounts in their profit-sharing ratio.

Journal entry:

Goodwill A/c Dr. (Amount of premium)

Existing Partners' Capital A/c Cr. (Distributed in their profit-sharing ratio)

Retirement of a partner:

The retiring partner is entitled to their share of the firm's goodwill, which is calculated based on their profit-sharing ratio.

This amount is paid by the remaining partners in their gaining ratio (ratio in which they share future profits after the partner's retirement).

Journal entry:

Retiring Partner's Capital A/c Dr. (Amount of goodwill share)

Remaining Partners' Capital A/c Cr. (Distributed in their gaining ratio)

2. Goodwill already recorded in the books:

Admission of a partner:

The goodwill account is not adjusted.

The incoming partner brings in capital based on their share in the revalued firm (including goodwill).

Journal entry:

Cash A/c Dr. (Amount brought in by new partner)

New Partner's Capital A/c Cr.

Retirement of a partner:

The retiring partner's share of goodwill is debited from the goodwill account and credited to their capital account.

The remaining partners' capital accounts are adjusted to reflect their new profit-sharing ratio.

Journal entry:

Retiring Partner's Capital A/c Dr. (Amount of goodwill share)

Goodwill A/c Cr.

Remaining Partners' Capital A/c Cr. (Distributed in their new profit-sharing ratio

Q2)What we the consequences of Non-Registration of Partnership deed?

Q)What we the consequences of Non-Registration of Partnership deed?

Ans. Here are the consequences of non-registration of a partnership deed in India explained elaborately in points:

1. **Limited Legal Recognition:**

   - Unregistered partnerships lack the legal recognition granted to registered ones.

   - Partnerships cannot sue or be sued in the name of the firm, affecting legal standing.

2. **Limited Right to Enforce:**

   - Partners may face difficulties in enforcing rights through legal avenues.

   - Courts may not entertain suits related to an unregistered partnership.

3. **No Claim for Set-Off:**

   - Unregistered partnerships may encounter challenges in claiming set-offs or deductions.

   - This can impact financial matters and tax implications for the partners.

4. **No Legal Evidence:**

   - Lack of registration means there is no legal evidence of the existence of the partnership.

   - This absence can complicate matters in case of disputes or legal proceedings.

5. **Restrictions on Property Rights:**

   - Partners may face restrictions on transferring property in the name of the partnership.

   - This limitation can hinder smooth business operations and property transactions.

6. **No Third-Party Confirmation:**

   - Third parties may be hesitant to engage in transactions with an unregistered partnership.

   - Registration provides a level of assurance and confirmation to external entities.

7. **Impact on Banking Transactions:**

   - Unregistered partnerships may face challenges in opening and operating bank accounts.

   - Banks often require legal documentation, and non-registration can hinder this process.

8. **Tax Implications:**

Ko   - Unregistered partnerships may miss out on certain tax benefits available to registered ones.

   - Tax implications can vary, and registration aids in proper compliance with tax regulations.

9. **Succession and Dissolution Challenges:**

   - Unregistered partnerships may encounter complications in matters of succession or dissolution.

   - The absence of legal documentation can lead to disputes among partners.

10. **Inability to Attract Investors:**

    - Investors may be wary of investing in an unregistered partnership due to legal uncertainties.

    - Registration provides a level of credibility, making the partnership more attractive to potential investors.

In summary, the non-registration of a partnership deed in India can have far-reaching consequences, affecting legal recognition, financial matters, property transactions, and overall business operations. Partners are advised to register their partnership to enjoy the legal benefits and avoid potential complications

DIfferences between Profit&Loss Account and Profit and Loss Appropriation Account

 DIfferences between Profit&Loss Account and Profit and Loss Appropriation Account 

Ans. Here are the key differences between Profit & Loss Account and Profit & Loss Appropriation Account:

1. **Purpose:**

   - **Profit & Loss Account:** It reflects the company's overall financial performance by summarizing revenues, expenses, gains, and losses over a specific period.

   - **Profit & Loss Appropriation Account:** It is specifically used to allocate or distribute the net profit among the partners or shareholders.

2. **Contents:**

   - **Profit & Loss Account:** Includes all income and expenses related to the regular operations of the business.

   - **Profit & Loss Appropriation Account:** Focuses on items like dividends, bonuses, and retained earnings, allocating profits to different stakeholders.

3. **Usage:**

   - **Profit & Loss Account:** Used for assessing the profitability of the business and providing insights into its operational efficiency.

   - **Profit & Loss Appropriation Account:** Used for decision-making regarding the distribution of profits among partners or shareholders.

4. **Timing:**

   - **Profit & Loss Account:** Prepared at the end of the accounting period to determine the overall profit or loss.

   - **Profit & Loss Appropriation Account:** Created after the Profit & Loss Account to decide how the net profit will be distributed.

5. **Stakeholders:**

   - **Profit & Loss Account:** Primarily for internal and external stakeholders interested in the company's financial performance.

   - **Profit & Loss Appropriation Account:** Mainly for internal stakeholders such as partners or shareholders involved in profit distribution decisions.

Remember, while the Profit & Loss Account is part of the financial statements, the Profit & Loss Appropriation Account is often an internal document used in partnership or company meetings for profit distribution decisions.

Distinguish between Equity Share & Preference Share

 Distinguish between Equity Share & Preference Share

Here is a comparison of equity shares and preference shares:

Feature	Equity Shares	Preference Shares
Dividend	No guaranteed dividend. Dividends are paid out of profits at the discretion of the board of directors.	Fixed or predetermined dividend, regardless of the company's profits.
Voting rights	Yes. Equity shareholders have the right to vote on company matters, such as the election of directors and approval of major transactions.	No. Preference shareholders typically do not have voting rights.
Claim on assets	Residual claim on assets. In the event of liquidation, equity shareholders are entitled to any remaining assets after all other creditors and debt holders have been paid.	Preferential claim on assets. Preference shareholders are entitled to receive their investment back before equity shareholders in the event of liquidation.
Risk	Higher risk. Equity shares are more volatile and subject to the fortunes of the company.	Lower risk. Preference shares offer a more stable income stream and are less volatile than equity shares.
Suitability for investors	Investors seeking capital appreciation and voting rights.	Investors seeking a steady income stream and capital preservation.

Differences between fixed capital Account and Fluctuating capital Account?

 )Differences between fixed capital Account and Fluctuating capital Account?

Ans.The distinctions between fixed capital accounts and fluctuating capital accounts are outlined below:"

1. **Nature of Investment:**

   - **Fixed Capital Account:** Represents long-term investments in assets that have a relatively stable value over time, such as machinery, buildings, and land.

   - **Fluctuating Capital Account:** Involves short-term investments that may vary in value more frequently, like stocks, bonds, and other market-based instruments.

2. **Duration of Investment:**

   - **Fixed Capital Account:** Involves investments intended to be held for an extended period, often years, as these assets are expected to provide long-term value.

   - **Fluctuating Capital Account:** Involves investments that can be bought and sold more readily, allowing for shorter holding periods based on market conditions.

3. **Risk and Return:**

   - **Fixed Capital Account:** Generally, investments in fixed capital carry lower liquidity but may offer more stability and potentially predictable returns over the long term.

   - **Fluctuating Capital Account:** Typically involves higher liquidity and potential for quick returns but comes with higher market risk and volatility.

4. **Asset Types:**

   - **Fixed Capital Account:** Comprises tangible assets used for production or business operations, contributing to the productive capacity of the enterprise.

   - **Fluctuating Capital Account:** Encompasses financial assets like stocks, bonds, derivatives, reflecting ownership in companies or debt instruments.

5. **Accounting Treatment:**

   - **Fixed Capital Account:** Reflects the historical cost of acquiring fixed assets, and their depreciation is recorded over time to allocate the cost.

   - **Fluctuating Capital Account:** Values are marked-to-market regularly, reflecting current market prices, which can lead to more frequent changes in the account's value.

6. **Purpose of Investment:**

   - **Fixed Capital Account:** Primarily focused on supporting the core operations and growth of the business by acquiring and maintaining essential assets.

   - **Fluctuating Capital Account:** Often driven by the goal of capital appreciation, income generation, or speculation based on market trends.

7. **Ownership Representation:**

   - **Fixed Capital Account:** Represents ownership in physical assets and infrastructure of the business.

   - **Fluctuating Capital Account:** Represents ownership in financial instruments, reflecting a stake in the performance of companies or markets.

Understanding these distinctions can help in forming a balanced investment portfolio that aligns with both short-term and long-term financial goals.