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3 years ago

Which principles refers to the assumption that a project will be evaluated based on its incremental cash flows?

Business

1 answer:

77julia77 [94]3 years ago

7 0

Answer: Stand alone principle

Explanation:

Stand alone principle is the principle that is used by a company to decide whether or not to engage in a project based on the profitability of identical projects that has the same risk. Stand alone principle allows firms to evaluate a project based solely on the incremental cash flows of a firm that is related to the project.

Without stand-alone principle, the project evaluation for a firm would require the forecast of all of the firm’s cash flows.

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What is Febuary 14th >?

docker41 [41]

Answer: valentines day.

Explanation: hope this helps

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3 years ago

Read 2 more answers

Presented below are four statements which you are to identify as true or false.

vagabundo [1.1K]

Answer:

1. True.

2. False.

3. True.

4. False.

Explanation:

GAAP is an acronym for Generally Accepted Accounting Principles. It comprises of the accounting standard, procedures and principles used by public institutions in the United States of America. The GAAP is issued by the Financial Accounting Standards Board (FASB) and adopted by the U.S. Securities and Exchange Commission (SEC).

GAAP includes each of the following pronouncements:

Statements of Financial Accounting Standards.

Accounting Research Bulletins.

Accounting Principles Board Opinions.

For external reporting purposes, US Generally Accepted Accounting Principles (GAAP) allows companies to use only the traditional format of the income statement.

When accountants prepare and compile financial statements for public firms, it must be in line with United States of America, Generally Accepted Accounting Principles (GAAP).

Also, the financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors.

Additionally, Securities and Exchange Commission (SEC) reviews registration statements of bond issuers, investment advisers etc, to ensure they comply with current laws and regulations.

1. True: GAAP is the term used to indicate the whole body of FASB authoritative literature.

2. False: Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. All companies are required to follow the disclosure requirements at all times.

3. True: The primary governmental body that has influence over the FASB is the SEC.

4. False: The FASB has a government mandate and therefore does not have to follow due process in issuing a standard. FASB has to follow due process all the time in issuing standards.

6 0

3 years ago

What would be the yearly earnings for a person with 9000 in savings at an annual interest rate of 1.5 percent?

Afina-wow [57]

What would be the yearly earnings for a person with 9000 in savings at an annual interest rate of 1.5 percent is: $135

<h3>Yearly earnings </h3>

Using this formula

Yearly earnings =Savings×Annual interest rate

Where:

Savings=9,000

Annual interest rate=1.5%

Let plug in the formula

Yearly earnings=9,000×1.5%

Yearly earnings =$135

Therefore what would be the yearly earnings for a person with 9000 in savings at an annual interest rate of 1.5 percent is: $135

Learn more about Yearly earnings here:brainly.com/question/26215194

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3 0

2 years ago

A finance company has a total of $20 million earmarked for homeowner and auto loans. On the average, homeowner loans have a 10%

serg [7]

Answer:

Housing million dollars $1,655.2

Automobile million dollars $413.80

Explanation:

Calculation to determine the total amount of loans of each type

Calculation for HOMEOWNER LOANS

Homeowner loans=$20,000-[(10%*20,000)/(4*12%+10%)]*10%

Homeowner loans=[$20,000-($2,000/48%+10%)]*10%

Homeowner loans=[$20,000-($2,000/58%)]*10%

Homeowner loans=[$20,000-$3,448.3]*10%

Homeowner loans=$16,552*10%

Homeowner loans=$1,655.2

Calculation for AUTO LOANS

Auto Loans=[(10%*20,000)/(4*12%+10%)]*12%

Auto Loans=($2,000/(48%+10%)]*12%

Auto Loans=($2,000/58%)*12%

Auto Loans= $3,448.3*12%

Auto Loans=$413.80

Based on the above calculation Homeowner loans amount of $1,655.2 is 4 times Auto Loans amount of $413.80

Therefore the total amount of loans of each type that Madison should extend to each category in order to maximize its returns are:

Housing million dollars $1,655.2

Automobile million dollars $413.80

3 0

3 years ago

Employees at GloboTech, a start-up software company, noticed that the owner overlooked certain questionable actions of high bill

gavmur [86]

Explanation:

This question refers to the ethical behavior of current leaders, whose actions and initiatives are based on individual analysis of certain situations, so that value judgments are made in a precise way to consider the benefits of ethical or unethical behaviors of employees for the organization.

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3 years ago