Answer:
<em>(d) to focus on changes in financial statement numbers</em>
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Explanation:
- <em>Ratio Analysis </em>beautifully captures the analysis of financials analysis of the company. The levels of leverage, liquidity and costs coverage etc. are all highlighted by ratio analysis. The crucial ratios like the Interest Coverage ratio, Debt Equity ratio, Debt ratio and Current Ratio etc. can all be compared of different companies for a better analysis.
- <em>Horizontal analysis </em>highlights the key changes in the financial numbers of the current quarter/year with respect to the previous quarter /year respectively like the change in sales, gross profit, operating profit and operating expenses etc. Thus, the relative rate of change in key numbers of companies can be compared.
- <em>Cash Flow Statement analysis</em> focuses on the cash flows earned by the business from operating (operational) activities, investment activities (fixed assets cash flows and investing receipts) and cash flows from financing activities (long term finance sources transactions and finance payments of dividend and interest). Thereby, the net increase/decrease in cash flows of companies can be studied for comparison between them.
- <em>The focus on changes in the financial statement numbers </em>is the least effective method out of all the options. All the analysis of the key financial measures of companies whether in absolute or relative form are fully captured by the options (a), (b) & (c) given in the problem as indicated above.
Answer:
The Production possibility Curve also known as Production Possibility Frontier PPF is the curve that depict the relationship in the production of 2 given goods in an economy e.g. Production of Wheat vs Production of cotton (<u><em>See Image). </em></u>
Explanation:
The curve basically shows 5 situations:
1. Point A: where all the production is devoted to Wheat
2. Point B: where all the production is devoted to Cotton
3. Points C: Any given point along the curve different to point A and B represent the trade off in the production of the 2 goods
4. Point D: Is an impossible point to achieve as it is outside the capabilities of the curve
5. Point E: Is an inefficient point of production as it is below the possibilities of production.
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Answer:
19.82%
Explanation:
Midpoint method = Q2 - Q1 / [(Q2 + Q1) / 2] / P2 - P1 / [(P2+P1) / 2]
3.33 = 2000 - 1000 / [(2000 + 1000) / 2] / P2 - P1 / [(P2+P1)/2]
3.33 = 0.66 / (P2 - P1) / [(P2+P1)/2]
By cross multiplying we have
0.66 = 3.33 [ (P2 - P1) / [(P2+P1)/2]
divide both sides by 3.33
19.82% = The mid point change in price.
Answer:
The above entry would decrease stockholders' equity by $10,000 and increase the liabilities by $10,000.
Explanation:
Consultation expense is an expense and when the expense gets debited, it refers to expense being incurred which in turn decreases stockholders' equity. Accounts payable is a liability and crediting accounts payable increases the liability.