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ahrayia [7]
3 years ago
6

Ratio analysis is an important component of evaluating company performance. It can provide great insights into how a company mat

ches up against itself over time and against other players within the industry. However, like many tools and techniques, ratio analysis has a few limitations and weaknesses. Which of the following statements represent a weakness or limitation of ratio analysis? Check all that apply. A firm may operate in multiple industries. Different firms may use different accounting practices. A firm’s financial statements show only one period of financial data.
Business
1 answer:
stepladder [879]3 years ago
6 0

Answer:

Different firms may use different accounting practices.

Explanation:

Financial ratios are ratios that summarises financial information and can be used in comparison of performance of companies.

Types of financial ratios :

1. Activity ratios

2. Liquidity ratios

3. Solvency ratios

4. Profitability ratios

5. Valuation ratios

If different accounting practices are used, it would result in different data. This can hamper comparison among companies

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How long should you wait before republishing a piece of content to a new website? You shouldn’t wait. Republish it immediately.
Oliga [24]

Answer:

The correct answer is Two weeks.

Explanation:

If you publish twice in a week, in the next you publish ten times, once in the third week and again ten times the next, your visits will take it very strangely. One of the ways to maintain a loyal audience is precisely to make her know the frequency of your blog post.

Only by having this regularity, your visitors will know how often they should visit your website.

In this way you eliminate the likelihood of someone visiting your blog and feeling frustrated when they did not find anything new when it was for that reason that they accessed, or finding 15 new posts when he hoped to find only 1.

8 0
3 years ago
TH Manufacturers expects to generate cash flows of $129,600 for the next two years. At the end of the two years the business wil
arsen [322]

Answer:

Vo  = <u>C1  </u>    +        <u>C2 + V2</u>

        1 + k              (1 + K)2

Vo = <u>$129,600  </u> +   <u>$129,600 + $3,200,000</u>

        1 + 0.14            (1 + 0.14)2

Vo = $113,684.21  + $2,562,019.08

Vo = $2,675,703.29

The correct answer is C

Explanation:  

The current value of the business equals cashflow in year 1 divided by 1 + K plus the aggregate of cashflow and sales value in year 2 divided by 1 + k raised to power 2.

7 0
3 years ago
Suppose banks keep no excess reserves and that all banks are currently meeting the reserve requirement. The Federal Reserve then
ANTONII [103]

Answer:

1. Assets is debited for $10,000 as loans.

2. Liabilities is credited for $10,000 as deposits.

Explanation:

Note: This question is not complete as the amount is omitted. The complete question is therefore presented before answering the question as follows:

Suppose banks keep no excess reserves and that all banks are currently meeting the reserve requirement. The Federal Reserve then makes an open market purchase of ​$10000 from Bank 1.

Use the​ T-account below to show the result of this transaction for Bank​ 1, assuming Bank 1 keeps no excess reserves after the transaction.

The explanation of the answer is now given as follows:

Note: See the attached photo for Bank 1's T-Account.

In the attached photo, we can see that:

1. Assets is debited for $10,000 as loans.

2. Liabilities is credited for $10,000 as deposits.

6 0
3 years ago
McGlothin Inc. is considering a project that has the following cash flow data. What is the project's payback?Year 0 1 2 3Cash fl
telo118 [61]

Answer:

c. 2.30 years

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

In year 0 = $1,150 (Initial investment)

In year 1 = $500

In year 2 = $500

In year 3 = $500

If we sum the first 2 year cash inflows than it would be $1,000

Now we deduct the $1,000 from the $1,150 , so the amount would be $150 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $500

So, the payback period equal to

= 2 years + ($150 ÷ $500)

= 2.30 years

In 2.30 yeas, the invested amount is recovered.

8 0
3 years ago
You are the curator of a museum. The museum is running short of funds, so you decide to increase revenue. What should you do to
SVETLANKA909090 [29]

Answer and explanation:

Demand elasticity measures the changes in quantity demanded as the result of changes in price. Demand elasticity is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal or higher than one (1) the product is <em>elastic </em>but if the result is lower than 1 the product is <em>inelastic</em>.

In the case, <em>as the elasticity of demand of the museum ticket is 0.45 it means the museum tickets is inelastic. This scenario implies that in front of changes of price the quantity demanded will not change. Thus, as a curator of the museum you should </em><u><em>increase the museum ticket price to increase revenue</em></u><em>.</em>

3 0
3 years ago
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