Answer:
<h2>First Part</h2>
1. True
Liquidity ratios such as the Current ratio are used to show that a company can cover its short-term obligations.
2. True
Asset management ratios juxtapose a company's performance vs its long term assets and so provide insights into management's efficiency.
3. False
Debt management ratios show how much of the company is funded by total debt not whether it has sufficient cash to repay its short- term debt obligations.
4. True
Profitability ratios take into account how much income is raised by a company so when this increases, the ratios will as well.
5. True
Market-Value ratios show the firm's value in the market which is a reflection of what investors and the markets think about the firm's growth prospects or current and future operational performance.
<h2>Second Part</h2>
The Weakness/ Limitations are;
a. A firm may operate in multiple industries.
Should this be the case, the company's performance in one sector cannot necessarily be compared to companies that operate in that single sector because it would not take into account the company's other sectors which may impact figures.
c. Different firms may use different accounting practices.
When different accounting practices are used, ratio analysis may not be a true indication of the situations in the company. For instance, a company using LIFO cannot be effectively compared to a company using FIFO when using ratio analysis.
Answer:
Year end adjusting entry:
Debit Credit
Salaries expense $1,000
(10*100)
Salaries payable $1,000
January 4, journal entry:
Debit Credit
Salaries expense $3,000
(10*100*3)
Salaries payable $1,000
Cash $4,000
(10*100*4)
Explanation:
The year end adjusting entry that shall be recorded by the Pablo management in its accounts on December 31 in respect of salaries expenses is given as follows:
Debit Credit
Salaries expense $1,000
(10*100)
Salaries payable $1,000
The journal entry that shall be recorded by the Pablo management in its accounts on January 4 in respect of salaries paid to employees is given as follows:
Debit Credit
Salaries expense $3,000
(10*100*3)
Salaries payable $1,000
Cash $4,000
(10*100*4)
Answer:
e. $20,075
Explanation:
The computation of the year 1 cash flow is shown below:
= Sales revenue - other operating cost - depreciation expenses - income tax expense + depreciation expenses
where,
Income tax expense = (Sales revenue - other operating cost - depreciation expenses) × income tax rate
= ($42,500 - $17,000 - $10,000) × 35%
= $5,425
And, the other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= $42,500 - $17,000 - $10,000 - $5,425
+ $10,000
= $20,075
Answer: This presentation helps you choose which of the five health insurance options works best for your family.
Explanation:
From the question, we are informed that employees usually choose a health care plan without carefully considering their options and they end up blaming someone else for not informing them sufficiently of their options ahead of time.
Due to this reason, the person want the employees to attend a fair and take the time to carefully weigh their options. Of the options given, the correct answer is that "this presentation helps you choose which of the five health insurance options works best for your family".
Emphasis is been placed on choice as the employees can choose what works best for them. A simple language is also used to pass the message across.
Answer:
The statement is: True.
Explanation:
Several factors influence the revenues of a business. <em>Change in consumers' patterns</em> is one of them. Individuals' behavior, needs, and expectations are not static. They vary over time. Firms must be aware of what tendencies are in the market to keep up with the changes. Otherwise, a company can lose its market share because of not knowing what is driving consumer purchases.
Another factor influencing institutions' profits is<em> consumer income</em>. If income decreases or if price rises but income keeps the same level, consumers will lose purchasing power decreasing the quantity demanded in different products which are translated in losses for companies.
