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Stella [2.4K]
1 year ago
14

according to sfac 5, the four criteria that must be met for an item to be recognized in the basic financial statements are

Business
1 answer:
Ilia_Sergeevich [38]1 year ago
8 0

These are the 4 main criteria that must be met for an item to be recognized in the basic financial statements according to sfac 5.

  • Relevance
  • Measurability
  • Definition
  • Reliability
<h3>What is meant by financial analysis?</h3>

Financial analysis is the process of examining a company's various finances in order to assess its financial stability and future prospects. Financial analysis assists business owners in determining any necessary courses of action to remain afloat, make a profit or avoid bankruptcy. It also assists investors in deciding whether to invest in your company. During this process, a company's financial statements, such as its income statement and balance sheet, are examined.

1. Vertical

Vertical financial analysis examines the relationship between various items on a financial statement. During one accounting period, for example, one item is measured against another item that is considered the base, and the relationship is expressed as a percentage. Despite the fact that it only accounts for one time period, it can assist you in recognizing changes over time and comparing various entities.

2. Horizontal

Horizontal analysis is the examination of how financial statement figures change over time. To put it another way, it compares one item to another from a different time period. As a result, it can aid in the analysis of a company's finances from one year to the next.

3. Availability of liquidity

Ratios are used in liquidity analysis to determine whether or not a company will be able to repay any debts or other expenses. This type of analysis is useful because if a company is unable to pay off its liabilities, it will face financial difficulties in the near future. Liquidity analysis is especially useful for lenders or creditors who want to know about your financial situation before extending you a loan or credit. In a liquidity analysis, various ratios such as the cash ratio and current ratio are used.

Thus the financial analysis is of different types and can be used according to the need.

For more information on financial analysis, refer to the given link:

brainly.com/question/14234253

#SPJ4

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Olivia’s employer deducts an amount from her paycheck for the medicare program. What type of withholding is being deducted from
hjlf
If your choices are:
A) tax exemption
B) local withholding
C) state withholding
D) Social Security

Then the answer is D) Social Security. It is from the government which gives the citizens to have the right to be admitted or to give insurance for the health.
6 0
2 years ago
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Which aspect of the Omnibus Trade and Competitiveness Act allows a U.S. president the authority to restrict sales of a country’s
Kipish [7]

Answer:

Market Access

Explanation:

Based on the information provided within the question it can be said that the aspect that is being mentioned is known formally as Market Access. This term refers to the process of making sure that anyone who may benefit has fast and easy access to the brands that are being sold and at the correct price, and that there are no unfair restrictions being imposed.

3 0
3 years ago
Martha, the chief designer of StyleSmartz, is considered a role model by her design team members for her role as an effective le
Lerok [7]

Answer:

engage in management openness by encouraging members to voice their opinion.

Explanation:

An important characteristic of management is approachability and openness of the manager to ideas of employees. This gives the manager an idea of the actual state of the workplace facilitating effective resolution of issues as they arise.

When employees know they can freely express themselves without being reprimanded, they better express themselves about challenges encountered.

Also opportunities and methods of doing things better is communicated to the manager

8 0
3 years ago
After retirement, you expect to live for 24 years. You would like to have $75,000 income each year. How much should you have sav
poizon [28]

Answer:

The amount that you should have saved in your retirement account to receive this income is:

= $727,995.88.

Explanation:

a) Data and Calculations:

Expected lifespan = 24 years

Expected annual income = $75,000

Interest rate per year = 9%

The amount of savings in the retirement account to receive this income is calculated from an online financial calculator as follows:

N (# of periods)  24

I/Y (Interest per year)  9

PMT (Periodic Payment)  75000

FV (Future Value)  0

 

Results

PV = $727,995.88

Sum of all periodic payments = $1,800,000.00

Total Interest = $1,072,004.12

5 0
2 years ago
etermine the degree of operating leverage for each approach at current sales levels. (Round answers to 2 decimal places, e.g. 2.
viktelen [127]

Answer: $1,376,000.

Explanation:

So, we are given the following data or parameters or information which is going to assist us in solving this question effectively;

(1). The current approach and automated approach for Contribution Margin Ratio is 25 % and 50 % respectively.

(2). The current approach and automated approach for Break-even point in Sales Dollar is $ 1,248,000 and $ 1,312,000 respectively.

(3). The current approach and automated approach for Degree of Operating Leverage is 4.18 and 5 respectively.

(4). The current and automated approach for Decline in net income for a 10 % decline in sales is 41.8 % and 50 %.

(5). The current and automated approach for level of Sales where net income will be same under both options is $ 1,376,000 and $ 1,376,000 Respectively.

(6). The current approach and automated approach for Margin of Safety Ratio is 24% and 20% respectively.

Note that;

(1). BP = TFC / CMR

Where BP= Break-even point in sales dollar, TFC = Total Fixed Cost and CMR= Contribution Margin Ratio.

(2). MSR = ( ASD - BSD) / ASD × 100.

Where MSR= Margin of Safety Ratio,ASD=Actual Sales dollars, BSD= Break-even Sales dollars , and ASD = Actual Sales dollars.

(3). CMR = CM ÷ Sales × 100.

CMR = Contribution margin ratio, CM =Contribution Margin.

(4). DOL = CM ÷ NI.

Where DOL = Degree of Operating Leverage, CM = Contribution Margin and NI = Net Income.

Decline in net income for a 10 % decline in sales = OL x 10.

Where OL => Operating Leverage.

We then say that V = level of sales.

=> V x 25 % - 312,000 = V x 50 % - 656,000.

=> 0.25 V = 344,000.

V = $ 1,376,000.

4 0
2 years ago
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