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leonid [27]
3 years ago
12

Small percentage changes in an amount from a company's financial statement may still represent large dollar amounts; therefore,

analysts should examine changes in both absolute dollar amounts and percentages.
Business
1 answer:
Lera25 [3.4K]3 years ago
4 0

Answer: You are trying to find out if the statement is true or false? It is FALSE.

Explanation: Analysts should be concerned with the material movements in the company's financial statements. Although as stated in the question, small changes could amount to material movement but that applies in situations where there is a huge outflow but at the same time, there is similar inflow, so the net effect is negligible on a particular financial statements line item. This instance is not relevant to financial analysts but only the concern of internal control and or internal audit.

Financial analysts are interested in what the key drivers of the financial statements are. These drivers in most cases are an avenue to explain what has transpired in the financials between the current period and the preceding one by way of writing a commentary and providing a succinct and holistic explanation of the financial statements.

It would be time consuming and too operational if analysts are concerned with every percentage movement in the financial statements.

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What should be the function of money? What do you mean by M2?
padilas [110]

Money is any object in which you can exchange for goods or services. We consider this currency. Money is also a store of value so that you can get those goods and services at a later time (so you don't have to immediately use up the currency right away if you don't need to).

If at some future date, the unit of money isn't able to purchase as much as it used to, then we say that inflation has occurred. For example, if a loaf of bread costs $1 today but then $5 ten years from now, then we say inflation has kicked in.  

-------------------------

Before we talk about M2, it helps to start with M0. That's a zero and not the letter 'oh'. In economics, M0 is the total collection of all cash (bills and coins) that are in circulation. This means we're just talking about physical things people can touch. Building to M1, it involves everything M0 talks about plus things like travelers checks and demand deposits. So if you're talking about M1, then you involve all physical cash as well.

Then finally moving to M2, it involves everything M0 and M1 does, plus savings accounts and time deposits. By "time deposits", I mean things like mutual funds and money market accounts. Basically things you may hear about when talking about wall street.

In short, M2 involves all physical cash plus other electronic stores of value (this is a fairly vague definition but it may work in many settings). It does not involve large time deposits as that is what M3 handles.

5 0
2 years ago
Bean​ Brewers, Inc., a manufacturer of coffee​ makers, had the following​ activities, allocated​ costs, and allocation​ bases: A
aivan3 [116]

Answer: B. $438

Explanation:

Correspondence Cost = Number of letters * Predetermined cost of correspondence  

Predetermined cost of correspondence = Allocated cost/ Allocated base

= 14,000/1,600 letters

= $8.75 per letter

Northeast Office used 50 letters for correspondence.

Cost = 8.75 * 50

= $437.50

= $438

4 0
3 years ago
Suppose that you enter into a short futures contract to sell July silver for $17.20 per ounce. The size of the contract is 5,000
ivanzaharov [21]

Answer:

$0.20

Explanation:

For computing the change in future price, first we have to determine the loss which is shown below:

Loss = Initial Margin - Maintenance Margin

        = $4,000 - $3,000

        = $1,000

Now the change in future price would be

= Loss ÷ size of the contract

= $1,000 ÷ 5,000 ounces

= $0.20

The future price is increased by $0.20

And, if the margin call is not meet than the broker will stop at best price so that he cannot suffer more loss

7 0
3 years ago
Read 2 more answers
n May 1, 2009 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2010.
Alenkinab [10]

Answer:

c. A credit to Earned Fees for $1,000.

Explanation:

As for the information provided, we know

Unearned income is an income account, and therefore, will be credited at the time of recording.

Further, it is told that as on 31 December, 2009 out of the total unearned income of $1,500, $1,000 is earned.

Since it is earned it has to be accounted in current year, for this earned income will be credited and unearned income will be reversed for the amount of earned income that is for $1,000.

8 0
3 years ago
The real risk-free rate is the increment to purchasing power that the lender earns in order to induce him or her to forego curre
galben [10]

Answer: True

         

Explanation: In simple words, real risk free rate refers to the rate than a borrower can actually get in the market for a specified amount and for a specified period.

Real risk free rate is seen as a measure of how the economy of a country is performing and is calculated by subtracting the inflation rate from the treasury bonds of the govt. which match the durability of the borrower.

   It depicts the actual increase in purchasing power as it deducts the impact of inflation over time. Thus, the given statement is true.

6 0
3 years ago
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