Answer: The correct answer is "a. the ability of management to use accruals to reduce the volatility of reported earnings over time.".
Explanation: Income smoothing refers to <u>the ability of management to use accruals to reduce the volatility of reported earnings over time.</u>
The smoothing of earnings is a practice that consists in reducing fluctuations in recognized income and, therefore, fluctuations in earnings. That is, the smoothing of earnings implies saving income in bonanza times to recognize them accountingly when income is meager.
Answer:
I should invest in dollar deposits.
Explanation:
Current exchange rate is 1 euro = $1.08
Assuming I have y euro, the equivalent in dollar is $1.08y
Rate of return on dollar deposit = 2% = 0.02
Return on investment = $1.08y + (0.02 × $1.08y) = $1.08y + $0.0216y = $1.1016y
Rate of return on euro deposit = 1% = 0.01
Return on investment = y euro + (0.01 × y euro) = y euro + 0.01 y euro = 1.01y euro = 1.01y × $1.08 = $1.0908y
I should invest in dollar deposits because the return on investment is greater than euro deposits.
Answer:
This motto will encourage the managers to love their job which results in a higher performance
Explanation:
Answer:
I would hire myself because my mom is a virgin but the sheets are still cold so the mayonaise is probably adopted but thank you I have a cat
Answer:
The law of one price establishes that the product or service price will remain the same for all the entire world.
Explanation:
The law of one price establishes that the product or service price will remain the same for all the entire world. It is necessary to take into account for this law that the price of the currency needs to be also the same and that the price of the product or service would not be affected by other factors such as additional buyers or sellers in the market.
On the other hand the purchasing power parity refers to the idea of an equilibrium of currencies in exchange rates, it means that the power for purchasing will be represented in the same way in the different countries, and it is important to mention that this theory is base in the law of one price.
The the long run equilibrium is an idea that in theory represents all the equilibrium of prices, quantities, and markets in general; on the other hand, for the short run equilibrium there are some limitations in which the market cannot be explained as properly and fully balanced.
