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irina1246 [14]
4 years ago
10

The least effective method for comparing financial statement information between companies is:

Business
1 answer:
Ulleksa [173]4 years ago
5 0

Answer:

<em>(d) to focus on changes in financial statement numbers</em>

<em></em>

Explanation:

  1. <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.
  2. <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.
  3. <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.
  4. <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.

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​Josiah, Inc. provides the following information for​ 2017:Net income​$350,000Market price per share of common stock​$50 per sha
AURORKA [14]

Answer:

Earnings per share for 2017 = $1.707

Explanation:

Earnings per share relates to the specific period, that how much on each individual share the earnings has been during the period.

Therefore, if there is change in number of equity shares average is taken, for that.

Equity on 1 Jan 2017 = 160,000 shares

Equity on 31 December 2017 = 250,000 shares

Average = \frac{160,000 + 250,000}{2} = 205,000

Earnings per share for 2017 = \frac{Net\ Income}{Average\ number\ of\ shares}

= \frac{350,000}{205,000} = 1.707

Earnings per share = $1.71 (Rounded off)

7 0
4 years ago
Over time the average rate of return on stocks is
DiKsa [7]
7%, hope this helps!

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Caramelatte
8 0
3 years ago
Read 2 more answers
The use of a differentiation strategy would be expected to be LEAST effective in which of the following markets? a. Commodity go
Tema [17]

Answer:

The correct answer is letter "A": Commodity goods.

Explanation:

A differentiation strategy is an approach adopted by companies to make the goods or services they offered unique compared to their competitors. Most firms tend to use price as the main key to the difference between their products and the competitors'.

Thus, <em>the differentiation strategy is less likely to be applied in commodity goods because they are inherently unique such as oil, natural gas, precious metals or foreign currencies</em>.

3 0
3 years ago
Which of the following statements is false? (2 points) If a tangible asset has a finite life, it should be amortized Goodwill is
ss7ja [257]

Answer:

The correct answer is (d)Research and development costs are expensed when incurred, except when the research and development expenditures result in a successful patent.

Explanation:

Research and development costs must be recognized as an expense within the accounting period in which they are presented, since regardless of whether or not a patent was obtained, the organization incurred costs represented in the research and development process that was executed. When this process generates a patent, it is necessary to recognize said right in an asset, but at no time will it be equal to the expenses incurred in the investigation process, since the company hopes to commercialize that knowledge for its own benefit.

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4 years ago
A handful of companies on the Fortune 500 list are more than 100 years old, which is rare. What organizational characteristics d
ohaa [14]

Answer:

Following are the organizational characteristics that explain the 100-year longevity of a company:

Explanation:

Selling Necessity Goods

Many of companies provide such goods and services which are essential for our everyday activities. Hence, people tend to buy from these companies as it is their routine to do so.

Laser-Sharp Customer Focus

These companies have always focused on the ever changing needs and demands of the customers and have worked accordingly.  Hence their focus on customer service is the key to their success.

Willingness to Chart New Territory

Since customer needs are always evolving, all organizations celebrating centennials have taken significant gambles in order to expand their offerings.  Steelcase, for instance, began as a furniture company but has recognized that the way people work has changed.  

Ongoing Community Relationships

Long-lasting organizations also make their mark by giving back to the communities in which they’ve thrived. The GSUSA estimates that its members complete more than 75 million hours of community service annually.  

These organizations have achieved so much because they have adapted their strategies to a changing world, and because they are always looking for ways to improve people’s lives.  It is these traits that position them well no matter what the future holds.

8 0
4 years ago
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