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andrey2020 [161]
2 years ago
15

Which are 3 common misconceptions users of an income statement may have?

Business
1 answer:
Mama L [17]2 years ago
3 0

The three most frequent misconceptions are that net income equals cash, net income excludes estimates, and net income reports all changes in value that occurred during the accounting period.

One of the three crucial financial statements used to describe a company's financial performance throughout a certain accounting period is the income statement. The balance sheet and the cash flow statement are the other two important statements. The income statement, which is often referred to as the profit and loss (P&L) statement or the statement of revenue and expense, primarily focuses on the company's revenue and expenses over a specific time period. Understanding how to study an income statement is the greatest approach to evaluate a business and choose whether or not to invest.

To learn more about income statement here

brainly.com/question/28035395

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Findell Corporation is considering two projects, A and B, and it has gathered the following estimates for the projects Project A
Vilka [71]

Answer:

a. 1.096

Explanation:

The present value index is the same as the profitablility index(PI), which is computed by dividing the present value of future cash inflows by the initial investment(the present value of cash outflows). A profitability of above 1 means that the project is viable as the numerator(PV of cash inflows) exceeds the denominator( initial cash outlay).

Project A PI index= Present value of cash inflows/Present value of cash outflows

Project A PI index= $84,360/$77,000

Project A PI index= 1.096  

8 0
3 years ago
Austingoodin<br> you cute to let go out pls
Arisa [49]

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3 0
3 years ago
You want a seat on the board of directors of Four Keys, Inc. The company has 265,000 shares of stock outstanding and the stock s
Mila [183]

Answer:

44,167.67 shares

Explanation:

Given that

Number of shares of stock outstanding = 265,000

Sale value per share of stock = $76

Number of seat for election = 5

So by considering the above information, the number of shares needed by using the cumulative voting is

= {shares outstanding ÷ (number of seats + 1) + 1}

= {(265,000 shares ÷ (5 +1) +1}

= 44,167.67 shares

5 0
3 years ago
The movement and storage of materials into a firm refers to:
Alexus [3.1K]
<span>The movement of storage of materials into a firm is material management. This is a technique that concerns itself with organizing, planning, and controlling how and what materials flow from the time they are originally purchased until they reach their destination.</span>
4 0
3 years ago
As her business grew, Gretchen could not spend as much time individually with her employees. She wanted to make sure her values
choli [55]

Answer:

The correct word for the blank spaces are: code of ethics.

Explanation:

The company's Code of Ethics represents the moral values a firm expects its employees to perform in their day-to-day activities. Usually written in a book, the Code of Ethics represents the core of the corporate culture of an organization which is the institution's spirit and differentiates it from competitors.

The Code of Ethics establishes guidelines for the behavior of workers within the workplace avoiding major issues that could harm the operations of the entity such as fraud.

8 0
3 years ago
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