1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tensa zangetsu [6.8K]
3 years ago
12

In accounting, emphasis is placed on determining net income in accordance with generally accepted accounting principles. In fina

nce, the primary emphasis is also on net income because that is what investors use to value the firm. However, a secondary financial consideration is cash flow, because cash is needed to operate the business.
a) true
b) false
Business
1 answer:
aksik [14]3 years ago
7 0

Answer: false

                 

Explanation: The first statement in the given case is correct as accounting is based on determining net income. Whereas, the subject matter of finance is related to increase the value of the company and the value of its shareholders wealth.

Finance does not only focus on net income but it also focuses on other aspects like liquidity, future potential etc.

Hence the given statement is false.

You might be interested in
A company had the following purchases and sales during its first year of operations: Purchases Sales January: 28 units at $210 1
DedPeter [7]

Answer:

$12,245

Explanation:

January:

Total value = Units left in inventory × cost per unit

                   = (28 - 19) × $210

                   = $1,890

February:

Total value = Units left in inventory × cost per unit

                   = (38 - 18) × $215

                   = $4,300

May:

Total value = Units left in inventory × cost per unit

                   = (33 - 22) × $220

                   = $2,420

September:

Total value = Units left in inventory × cost per unit

                   = (30 - 21) × $225

                   = $2,025

November:

Total value = Units left in inventory × cost per unit

                   = (35 - 28) × $230

                   = $1,610

Cost of the ending inventory:

= $1,890 + $4,300 + $2,420 + $2,025 +  $1,610

= $12,245

4 0
3 years ago
A firm has a return on equity of 12.4 percent according to the dividend growth model and a return of 18.7 percent according to t
uysha [10]

Answer:

It would be wise to use the CAPM capital cost.

Explanation:

It should use the Capital Assets Pricing Model.

The market rate is not sufficient. It is included in the CAPM calculation to asses the impact in the firm or industry beta and the free-risk rate.

The return for the dividend grows model is calculated with the current stock price and expected dividends. We can't know for sure if the stock wasn't undervalued or overrated at the moment of solving for return.

The CAPM model takes consideration of the current market interest rate, the own non-diversifiable risk of the firm and the fact of a free-risk interest rate. It is the better option

8 0
3 years ago
Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also i
Mnenie [13.5K]

Answer:

1. $46,000

2.$46,000

Explanation:

According to the scenario, computation of the given data are as follows,

Inventory price = 230,000 pesos

1. Consolidated balance sheet amount = Inventory price × Rate on November 1, 2017

= 230,000 × $0.20

= $46,000

2. Consolidated statement cost of goods sold for the year ending December 31, 2018  = Inventory price × Rate on November 1, 2017

= 230,000 × $0.20

= $46,000

3 0
3 years ago
The Good Roads Amendment requires that _______ percent of road-user fees be spent on building and maintaining roads.
suter [353]

Answer:

75 percent

Explanation:

The good roads amendment is a law enacted by legislatives in the USA states that ensure maintenance of roads in each state as well as interconnecting roads.

It states, amist other things, that 75% of road user fees collected through tolls and other means are spent on road maintenance.

Cheers.

8 0
3 years ago
Which of the following is not a good guideline to follow regarding the use of handouts?
masha68 [24]

Answer: C. Use a mix of serif and sans serif fonts for the text.

Explanation:

The good guideline to follow regarding the use of handouts are making sure that all elements are aligned appropriately with other elements, never distribute a handout after the beginning of a presentation and by making sure that the handouts have an obvious front door and clear pathway.

The option about using a mix of serif and sans serif fonts for the text is not good. This is because the preferred font is usually Times New Roman.

5 0
3 years ago
Other questions:
  • Smoke, Inc. makes and sells buckets. Each bucket uses 1/2 pound of plastic. Budgeted production of buckets in units for the next
    12·1 answer
  • The _________________ is the buying and selling of Treasury securities to influence the nation’s money supply..
    12·1 answer
  • Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies t
    11·1 answer
  • The "bundle of values" the advertiser presents to the consumer is referred to as the _____.
    11·1 answer
  • If you were starting a new software development company and could locate it anywhere in the world, which place would you choose?
    14·1 answer
  • Felix and Isabella Franklin have been married since 2016. Felix is a U.S. citizen with a valid Social Security number. Isabella
    14·1 answer
  • The next dividend payment by Dizzle, Inc., will be $2.85 per share. The dividends are anticipated to maintain a growth rate of 5
    6·2 answers
  • In the model of monopolistic competition, trade costs between countries cause A) marginal costs of exported goods to exceed the
    13·1 answer
  • 2. Ellen went to play golf last week at her favorite course. As she was approaching the first hole, she noticed (1 point)
    5·1 answer
  • What is the best definition of technology?
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!