Answer:
The correct answer id True.
Explanation:
Common stock is last stock in line for any corporate payouts, including dividends and liquidation payments.
The holder of common (ordinary) stocks are consider to be the owner of the company. They have voting right. These shares entitled their holder to dividends that may vary in amount and may even be missed, depending on the state of the company. However with greater reward their comes greater risk. So in case of winding up they will be last one to get any benifit after settlement of all claim.
Answer:
Tactical planning.
Explanation:
Tactical planning is a type of planning that deals with specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets. It usually occurs after an individual, organization or team has created its strategic plan which typically outlines their specific goals and objectives.
Hence, it simply describe or highlight the steps and actions to be taken by an individual, organization or team in order to achieve the set goals and objectives from a strategic plan.
Answer:
The differences between US GAAP and IFRS pose an extra cost because international corporations must prepare two separate accounting statements. But besides that, other potential risks include paying higher taxes than what the companies should pay int their home countries and the uncertainty generated by changing rules.
Not only do current tax rates affect potential investments, e.g. currently companies in the US pay relatively low corporate taxes (Tax Cuts and Jobs Act of 2017) but these benefits end on 2025. But also different methods for valuating physical assets and R&D costs can represent higher than expected taxes. E.g. depending on a company's needs, it may be beneficial to expense all R&D costs right away, or maybe it would be better to capitalize some of them after technical feasibility is achieved (IFRS).
The main advantage of having uniform rules (e.g. UCC) is that all the companies know exactly what to expect and how to act. Certainty decreases risk, and less risk reduces costs.
Explanation:
In the US, the vast majority of firms use US GAAP as their accounting method, but around the world the IFRS method is used.
Physical asset valuation is the process of determining the value of your physical assets including P, P & E, and also inventories.
- When valuing inventories IFRS uses FIFO, while US GAAP allows FIFO, LIFO or weighted average costing methods. US GAAP also values inventory at lesser of cost or market value, while IFRS values inventory at lesser of cost or net realizable value.
- US GAAP uses the cost method to determine the historic cost of an asset, while IFRS uses basically the same method but does not include all the costs of location of the assets (e.g. cost of removing or clearing a facility).
- US GAAP recognizes non-monetary exchanges while IFRS doesn't.
- IFRS also allows the cost of asset to be revalued, which can result in unrealized gains or losses. The US GAAP only considers historic costs.
- There are also other minor differences regarding depreciation, disposals and impairment rules.
Research and development must be expensed right away under US GAAP, while IFRS basically requires the same, it allows some capitalization of development expenditures if certain criteria is met (technical feasibility is achieved).
