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3 years ago

Scenario analysis is a way of testing forecasts by changing one assumption at a time.

Business

1 answer:

weqwewe [10]3 years ago

4 0

Answer:

False

Explanation:

Although scenario analysis is a way of testing forecasts but not necessarily one assumption at a time.

Scenario analysis is done by keeping all the key risks in mind and predicting the possible outcomes, primary effects and secondary effects on a project. Secondary effects are further analysed to see if there are any other possible risks to consider.

It is not compulsory to change just one attribute at a time, many factors are alone and together analysed to predict better and have a proper set of actions ready to tackle the crisis.

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On August 1, 2017, a company borrowed cash and signed a one-year interest-bearing note on which both the face value and interest

mezya [45]

Answer:

d. Line 3

Explanation:

Generally, the liabilities are classified as current and long term based on their duration, on the date of issue of notes payable the liability is long as the period is of 1 year, whereas generally notes payable are not for 1 year and are termed as short term i.e. current liabilities.

But, on 31 Dec 2017 the period to pay the notes payable and the interest thereon is just of 7 months left, therefore on the balance sheet date both the liabilities will be considered and clarified as Current Liabilities.

Therefore, correct option is

d. Line 3

7 0

3 years ago

A basic idea underlying __________________ is that a manager should be held responsible only for those items that the manager ca

lubasha [3.4K]

Answer:

C. Responsibility accounting

Explanation:

The correct answer is C.

Responsibility accounting is a concept of accounting that is used as performance measurement. The main idea is that big and varied organizations are difficult, and almost impossible to manage as one segment, therefore they must be cut into parts or separated into parts that can be managed. These parts, are called responsibility centers that include:

1. Cost centers,

2. Revenue centers,

3. profit centers, and

4. investment centers.

This approach gives room for responsibility to be given to the manager in these parts that have the biggest amount of influence over the key elements that are to be managed.

4 0

3 years ago

Acme Corporation (Scenario) Acme Corporation's management feels that employees could be more motivated by their jobs. The jobs w

VLD [36.1K]

Answer: TASK IDENTITY

Explanation:

In simple words,the degree to which a work includes doing a comprehensive piece of work from start to finish and recognizable with a noticeable result as opposed to doing just a segment of the job.

Job identity is a key component of job satisfaction.Task identity is the degree to which-from starting point A to completion point B-a job is done. In other words, it represents to what extent the result is anticipated or noticeable.

Hence from the above we can conclude that the company is doing the task identity.

7 0

2 years ago

Accounting Equation Shannon Cook is the stockholder and operator of Personality Shine LLC, a motivational consulting business. A

Neporo4naja [7]

Answer:

a. Stockholders' equity as of December 31, 2017: $635,000

b. Stockholders' equity as of December 31, 2018: $524,000

Explanation:

Please find the below for detailed explanation and calculations:

We have the Accounting Equation as: Total Asset = Total Liabilities + Total Equity <=> Total Equity = Total Asset - Total Liabilities

Applying the Accounting Equation to find the Stockholder's Equity at the two point of time require, we have the calculation as below:

* December 31, 2017:

Total Asset = $836,000; Total Liabilities = $201,000

=> Total Stockholder's Equity = $836,000 - $201,000 =$635,000

*December 2018:

Total Asset = $836,000 - $159,000 = $677,000; Total Liabilities = $201,000 - $48,000 = $153,000

=> Total Stockholder's equity = $677,000 - $153,000 = $524,000

3 0

2 years ago

A firm's cost of equity is 22%. Its before-tax cost of debt is 13% and its marginal tax rate is 21%. The firm's capital structur

alisha [4.7K]

Answer:

WACC= 17.95%

Explanation:

Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund.

It is calculated using the formula below:

WACC = (We×Ke) + (Wd×Kd)

Ke-cost of equity- 22%

We- equity weight- 100% - 45% = 55%

Kd-After tax cost of debt-10.3%

Wd- 45%

After tax cost of debt = Before tax ×× (1- tax rate)

After tax cost of debt = 13%× (1-0.21) = 10.3%

Cost of equity = 22%

WACC =(0.55× 22%) + (0.45× 13%)=17.95%

WACC= 17.95%

4 0

3 years ago