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Ymorist [56]
2 years ago
5

Explain how a company's accounting policy choices can affect its ratios.

Business
1 answer:
slega [8]2 years ago
8 0

Ratio Analysis doesn't incorporate the impact of Accounting policies adopted by the business in recognizing Income and Expenses.

The resultant comparison between the companies primarily based on Ratio evaluation could be biased and will no longer exhibit the actual comparison among the companies.

A company's choice in accounting regulations will indicate whether management is aggressive or conservative in reporting its earnings. Accounting guidelines still want to adhere to typically accepted accounting principles (GAAP). Accounting ratios, an vital sub-set of financial ratios, are a collection of metrics used to measure the efficiency and profitability of a organization primarily based on its monetary reviews. They offer a way of expressing the connection between one accounting information point to another and are the premise of ratio analysis. Ratio analysis is a method to understand the liquidity function, efficiency of operations, profitability role, and solvency of a business enterprise. It's far a quantitative approach that makes use of an enterprise's monetary statements, along with the profits statement and the balance sheet.

Learn more about Accounting policy here:-

brainly.com/question/25746199

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Jenny was buying the company’s first digital copier, and she involved all of the company's department heads in the decision. Jen
Iteru [2.4K]

Answer:

<em>New Buy</em>

Explanation:

A new buy <em>is a situation that requires an item to be purchased for the very first time. </em>

It is crucial for the business seller to provide a compelling argument in this type of purchasing situation to use their product line and a lot of information to help the business owner make an informed choice.

A new buy scenario can take much longer to happen as participants in the research evaluation and purchase center will have to make the final decision.

7 0
3 years ago
Marc is a high school graduate and currently works as a corrections officer at a local prison. He would like to go back to schoo
Tatiana [17]

Answer:

Option (c) is correct.

Explanation:

In this situation, he is considered as employed. Presently, he is working as a correction officer and this job is suitable according to his qualifications. If he is trained and still working in a same department at a same job position then this situation is considered as an underemployed.

Hence,

While computing the official unemployment rate, the Marc is considered as an employed.

4 0
4 years ago
What song lyric from the Rolling Stones expresses a powerful economic idea?
Kazeer [188]

Answer:

The correct answer is: "You can't always get what you want".

Explanation:

British well-known rock band "The Rolling Stones" was formed in 1962. Along their hits, we can identify "Paint it black", "Give me shelter", "Wild Horses", "Waiting on a friend" or "You can't always get what you want" (released in 1996) which is a song encouraging people to fight for what they want to achieve even if not all the time what is desired can be obtained.

3 0
4 years ago
What is the statute of limitations for transactions​ involving: a. Fraud​ (e.g., failure to file a tax​ return) b. Disallowance
san4es73 [151]

Answer:

The statute of limitations is as indicated for different cases:

a: Fraud: The statute of limitations remains open.

b:Disallowance of tax deduction items: The assessment is made within three years from the later date of tax filing or due date.

c: The omission of rental income that is equal to greater than​ 25% of the​ taxpayer's reported gross income: A six year statute of limitation is applicable.

Explanation:

The statute of Limitations for the following cases are

a. Fraud​ (e.g., failure to file a tax​ return)

In this case the statute of Limitations indicate that <em>The statute of limitations remains open indefinitely if a fraudulent return is filed or if no return is filed at all.</em>

b. Disallowance of tax deduction items

In this case the statute of Limitations indicate that <em>The general rule for the disallowance of tax deduction items is that an assessment may be made against the taxpayer within three years from the later of the date the tax return was filed or its due date.</em>

c:The omission of rental income that is equal to greater than​ 25% of the​ taxpayer's reported gross income

In this case the statute of Limitations indicate that <em> A six year statute of limitations applies if the taxpayer omits an item of gross income that is in excess of​ 25% of the gross income that is reported on the return.</em>

<em></em>

7 0
3 years ago
Which one of the following is not a right of common stockholders?a) To share proportionately in all management decisions.b) To s
lozanna [386]

Answer: Option A

Explanation: Common stockholders refers to the holders of common equity of an organisation. These shareholders are actually the owners of the organisation. They have the potential to earn maximum benefit and bear the maximum risk.

They have the right to select the auditor and board of directors but they cannot interfere with the management decisions. This right stands in the domain of the top managers which are appointed by these shareholders.

Thus, we can conclude that the correct option is A .

5 0
3 years ago
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