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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.

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Read 2 more answers
1. Weekly demand for smartphones at the Apple store is normally distributed with a mean =300 and a standard deviation of =200.
Rus_ich [418]

Answer:

(a) 464 units

(b) 1,064 units

Explanation:

Given that,

Mean, M = 300

Standard deviation, SD = 200

Targeting CSL = 95%

Z-value for the 0.95 = 1.645 (Obtained from the Z-tables)

Lead time, L = 2

Standard deviation during lead time = SD × √L

                                                            = 200 × √2

                                                            = 200 × 1.41

                                                            = 282

Safety stock = z × Standard deviation during lead time

                    = 1.645 × 282

                    = 463.89 or 464 units

ROP = (M × L) + Safety stock

        = (300 × 2) + 464

        = 600 + 464

        = 1,064 units

3 0
3 years ago
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