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2 years ago

The underlying conditions that create demand by users for reliable information include?

1 answer:

4 0

Transactions that are numerous and complicated, users who are separated from accounting records by distance and time, financial judgments that are significant to users and investors, and time-sensitive decisions are some of the underlying factors that drive demand by users for trustworthy information.

An agreement that has been fulfilled between a buyer and a seller to trade goods, services, or financial assets in exchange for cash is referred to as a transaction. In corporate accounting, the phrase is also frequently used. This simple definition can be difficult to apply in business bookkeeping. Depending on whether a corporation employs accrual accounting or cash accounting, a transaction may be recorded by it sooner or later.

To know more about transaction.

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A firm has current assets that could be sold for their book value of $32 million. The book value of its fixed assets is $70 mill

pickupchik [31]

Answer:

Market value of equity / book value of equity 72/52 = 1.38

The company is a little overvalued.

It means that the assets they have because the rate is declining, have a higher yield than the market, that's why their market value increase, therefore the investor will pay more to acquire the company or shares of the company because their profits will be above the common of the industry.

Explanation:

concept book value market value diference

current assets 32 millons 32 millons 0

long term assets 70 millons 100 millons +30,000,000

liabilities 50 millons 60 millons -10,000,000

TOTALS 70+32 - 50= 52 32+100-60=72 +20,000,000

Market value of equity / book value of equity 72/52 = 1.38

This ratio tries to determinate if a company is being undervalued or overvalued.

It is usually good to help a third party at the task of determinate whether or not a company's market value is suffering from speculation (when extremely overvalued)

When the ratio is below 1 It will mean that it is undervalued. The manager may interpret this that third parties see the company cheap while trading.

When it is above 1, it is overvalued, this means an investor will pay more for a portion of the company than it really has. This can lead to thinking that forecast profit is rising and because of that the investors are paying a premium. But if it gets really high, then it is saying that the company is subject to speculation and the price bubble may explode anytime.

7 0

3 years ago

Which scenario is allowed under the free-exercise clause?a parent leads a prayer in a public park.a teacher gives out crosses at

morpeh [17]

A parent leads a prayer in a public park

8 0

4 years ago

Read 2 more answers

Sanfillipo, Inc., had 800 units of inventory on hand at March 1 of the current year, costing $20 each. Purchases and sales of in

stira [4]

Answer:

According to a physical count, 600 units were on hand at the end of March. The cost of goods sold for March applying the FIFO method is:

$1081600

Explanation:

MARCH 1 800 20

MARCH 8 8600 22

MARCH 8 15400 22

MARCH 8 22400 24

MARCH 8 27400 24

Final Inv. 600

Sell units 74000

FIFO Purch. Unit cost Sell Un. Cost

MARCH 1 800 20 800 16000

MARCH 8 8600 22 8600 189200

MARCH 8 15400 22 15400 338800

MARCH 8 22400 24 22400 537600

MARCH 8 27400 24 26800 643200

74000 1081600

7 0

3 years ago

Read 2 more answers

Quickie Inc., a perfectly competitive firm, currently maximizes profit by producing 400 units of output. If its marginal cost is

jeka94

Answer:

economic profit = $2000

Explanation:

given data

currently maximizes profit = 400 units

marginal cost = $25

average total cost = $20

to find out

earning economic profit

solution

first we get here Total revenues that is express as

Total revenues = currently maximizes profit × marginal cost

Total revenues = 400 × $25

Total revenues = $10000

and Total cost will be

Total cost = currently maximizes profit × average cost

Total cost = 400 × $20

Total cost = $8000

so economic profit will be

economic profit = Total revenues - Total cost

economic profit = $10,000 - $8,000

economic profit = $2000

8 0

3 years ago

Two investment centers at a large corporation have the following current-year income and asset data: Investment Center A Invest

Sergio039 [100]

Answer:

26.923%

Explanation:

Return on Investment

$\frac{return}{investment}$

Center B

return 525,000

investment 1,950,000

ROI 525,000 / 1,950,000 = 0,26923076923 = 26.923%

Is metric is used to determinatethe efficiency of the assets. It compares the generated amount with the investment account.

The investment yields 26.923% of the principal

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3 years ago