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Naily [24]
3 years ago
7

The primary of financial reporting is to provide financial information about companies that is useful to capital providers for d

ecision making. (Enter only one word per blank.)
Business
1 answer:
Shkiper50 [21]3 years ago
8 0

Answer:

The primary <u>OBJECTIVE</u> of financial reporting is to provide financial information about companies that is useful to capital providers for decision making.

Explanation:

The objective of financial reporting is to provide information that is useful to existing and potential investors or creditors. One of the main uses given to financial reports is comparing one business to another. In order for the reports to be comparable, they must follow strict standards and be properly prepared.

If the reports aren't comparable, they use is extremely limited, since how else can you decide if investing in company A is a better idea than investing in company B. Comparability applies even to the same company, since you must be able to compare the financial results of different years in order to evaluate the performance of the company.  

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Which of the following is a difference between common stock and bonds? A) Bondholders have a voice in management; common stockho
alexandr1967 [171]

Answer:

B) Bondholders have a senior claim on assets and income relative to stockholders.

Explanation:

Bond holder: They are one who owns bonds issued by the company, where companies are not liable to pay a dividend if they fail to generate enough profit. Although preferred stock provides added financial leverage in much the same way as bonds, it differs from bonds in that the issuer can pass a dividend payment without suffering the consequences that result when an interest payment is missed on a bond.

Share holder: They are the ones who own stock in a company. The buyer has an option to choose between common stock and preferred stock. The company take priority in paying a dividend to the common stockholder, however, the preferred stockholder has a voting right in the company.  

7 0
3 years ago
You purchase one IBM July 125 call contract for a premium of $5. You hold the option until the expiration date when IBM stock se
Trava [24]

Answer:

Loss of $500

Explanation:

Given that

Stock price = 123

Strike price = 125

Premium price = 5

Recall that

Long call profit = (MAX (stock price - strike price, 0) - premium per share

Thus,

Long call profit = Max [0, ($123 - $125)(100)] - $500

= - $500.

Therefore, the negative sign in front indicates a loss of $500

3 0
4 years ago
Suppose the economy is in short-run equilibrium above potential GDP, the unemployment rate is very low, and wages and prices are
Effectus [21]

Answer:

an open market sale of Treasury securities (bonds).

Explanation:

An open market sale will decrease the money supply so aggregate demand decreases and shifts to the left.

8 0
3 years ago
Improving business processes by reengineering them, benchmarking specific activities against industry leaders, encouraging emplo
V125BC [204]

Answer: (C) Piecemeal productivity improvements

Explanation:

The piecemeal productivity improvement is one of the type of business strategy that is used by various types of successful organization for the purpose of improving the productivity of an employees, the business process and also managing all bench-marking activities in an organization.

 According to the given question, the given  activities in an organization are the example of Piecemeal productivity improvements that helps in expanding the product scope in the market. Therefore, Option (C) is correct answer.  

  Therefore, Option (C) is correct answer.

4 0
3 years ago
You sold a put contract on EDF stock at an option price of $.50 and an exercise price of $21. Today, EDF stock is selling for $2
andreyandreev [35.5K]

Answer:

-$50

Explanation:

Calculation to determine your total profit on this investment

Total profit = 1 × 100 × ($.50 - $21+ $20)

Total profit = 100×(-$0.5)

Total profit = -$50

Therefore your total profit on this investment is -$50

7 0
3 years ago
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