Answer:
True or False Statements about the conceptual framework:
(a) False: The fundamental qualitative characteristics that make accounting information useful are relevance and faithful representation, which suggest materiality and completeness respectively.
(b) False: Relevant information must also be material in a financial statement user's decision, in addition to having predictive and confirmatory values.
(c) False: It is information that is relevant that is characterized as having predictive or confirmatory value, and not information that shows faithful representation.
(d) False: Comparability also refers to comparisons of a firm over time (which is appropriately described as consistency). This is in addition to the similar reporting of information by different companies.
(e) False: Enhancing characteristics do not relate only to faithful representation but also to relevance.
(f) True.
Explanation:
Faithful representation implies completeness. Relevance means that the disclosure will attract important consideration and is material to the matter. Therefore, users of financial reports base their decisions on relevant information and not irrelevant details.
Answer:
False.
Explanation:
An attractive industry are not one that is characterized by high entry barriers, suppliers and buyers with strong bargaining power, low threats from substitute products, and low rivalry among firms.
An industry is defined by a group of firm that produce good and service, which are close subtitute and bargaining power of supplier are not considered as entry barrier to a firm in the open market. Industry with high fixed cost can pose high degree of rivalry among firm.
The answer to the blank space is etiquette and manners.
When a salesperson receives training to enhance their etiquette and manners, it would help with their self-confidence when meeting potential clients or customers. It would also help them in establishing a good relationship with these individuals, since people are more receptive to people with good manners.
Answer:
d. 4 years
Explanation:
Cash payback period is the time on which the company receive from the investment the same amount of money investment
cash fows = investment
regardless of discount or interest rates or changes in the value of the equipment. It is just answerng:
I put 100,000 dollars in the project, when I get 100,000 dollars back ?
The usual formula will be:
380,000/ 95,000 = 4 years
Answer:
$9.43
Explanation:
Calculation for what should this stock sell for today
Stock today = $1.60/1.135 + $1.10/1.135^2 + $13.50/1.135^5
Stock today = $9.43
Therefore what should this stock sell for today is $9.43
