M/b ratios typically exceed one, which means that investors are willing to pay more for stocks than their accounting book values.
The Book value is the carrying amount of the company's assets minus the receivables (such as company liabilities) that exceed common stock. The term book value comes from the accounting practice of accounting for assets at their original costs.
The Book value of a company is total assets minus total liabilities. Total assets and total liabilities are included on the balance sheet of the annual and quarterly reports.
Book value refers to the value of the asset reported on the balance sheet, that is, the value of the asset after the accumulated depreciation has been recorded. Every company owns multiple assets. Therefore, every business also has a book value, which is the present value of the asset minus the liability or accrued debt.
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Answer:
21 times
Explanation:
Calculation to determine Beer Corporation's price earnings ratio
First step is to get Calculate the Earning per share ( EPS)
EPS=$216,000 ÷ $58,500
EPS= $3.69
Now let calculate the price earnings ratio
Price earnings ratio= $79 ÷ $3.69
Price earnings ratio= 21 times
Therefore Beer Corporation's price earnings ratio is 21 times
Answer:
Consistency principle
Explanation:
Accounting principles are defined as the general rules of.axcpunting that businesses are expected to follow when reporting financial information.
Accounting principles include:
- Accrual principle
- Conservatism principle
- Consistency principle
- Cost principle
- Economic entity principle
- Full disclosure principle
- Going concern principle
- Matching principle
- Materiality principle
- Monetary unit principle
- Reliability principle
- Revenue recognition principle
- Time period principle
Consistency principle requires one the continue using an accounting method consistently for future accounting periods so that information can be easily comparable.
In the given scenario the accountant tells Tenisa that US GAAP allows a company to choose its inventory valuation method as long as it doesn't change over time without a justifiable reason.
This is an example of consistency principle
True
<span>Labeling theory is a sociological and criminological theory stating that a strong, negative reaction from society to an individual's crime or misbehavior can drive that individual to be more deviant by affecting (negatively) his/her self concept and by preventing him/her from gaining access to conventional opportunities.
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Extralegal factors are those that are not covered or regulated by law. Examples of these factors or variables include gender, age, social class, race and economic status. Consciously or not, these variables can be taken as "biases" that may affect prosecution and arrest of certain individuals.
Answer:
processing costs
Explanation:
Based on the information provided within the question it can be said that the cost incurred by Jefferson Tech Corp. is an example of processing costs. This term refers to the direct costs allocated to tools that allow the company to continue it's operations in an efficient manner. Therefore maintenance of the data management system (which is essential) are considered as processing costs.
