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expeople1 [14]
4 years ago
12

According to the FASB’s conceptual framework, the quality of information that enables users to identify similarities in and diff

erences between two sets of economic phenomena is:_______.
A. Comparability.
B. Matching.
C. Neutrality.
D. Conservatism.
Business
1 answer:
ehidna [41]4 years ago
6 0

Answer:

A) Comparability.

Explanation:

According to FASB, the objective of financial reporting is to provide information that is useful to existing and potential investors or creditors. One of the main uses given to financial reports is comparing one business to another. In order for the reports to be comparable, they must follow strict standards and be properly prepared.

If the reports aren't comparable, they use is extremely limited, since how else can you decide if investing in company A is a better idea than investing in company B. Comparability applies even to the same company, since you must be able to compare the financial results of different years in order to evaluate the performance of the company.  

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Franklin Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Un
Ugo [173]

Answer:

The answer is given below;

Explanation:

Plan  II    EPS=Net Income/Weighted Average shares outstanding

                    =$450,000-(2,210,000*7%)/120,000=$2.46

Plan I    =$450,000/170,000=$2.64

3 0
3 years ago
What is the primary goal of business​
solong [7]

Answer:

Profit making and survival

Explanation:

The main objectives that a business might have are: Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis. Profit maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders.

7 0
3 years ago
Read 2 more answers
Average Rate of Return—New Product Micro Tek Inc. is considering an investment in new equipment that will be used to manufacture
VladimirAG [237]

Answer:

155%

Explanation:

The computation of Average rate of return is shown below:-

Annual operating income = Sales - Manufacturing cost

= (4,000 × $450) - (4,000  × $264)

= $744,000

Average investment = (Initial cost + Residual value) ÷ 2

= ($940,000 + $20,000) ÷ 2

= $480,000

Average rate of return = Average annual operating income ÷ Average investment

= $744,000 ÷ $480,000

= 155%

4 0
4 years ago
Mara Kay is a system analyst for a national department store. She was tasked to identify previously unknown relationships in the
kherson [118]

Answer: Data Mining

Explanation: Mara Kay tasked with identifying previously unknown relationships in the company's sales data. This is an indication that Mara Kay will be working with pre-existing company data.  

Data Mining can therefore be defined as the examination of large pre-existing databases in order to discover/identify patterns that will be useful in generating new information.

Data Mining is also known as Knowledge Discovery in Databases.

Data Mining will not be complete if the results of the analysis are not used for future purposes, therefore, Mara Kay will use the results of her findings for future promotions.

5 0
4 years ago
Importance of irritabilty​
Vera_Pavlovna [14]
Irritability is important from a mental health perspective as a common symptom of concern and predictor of outcomes.
3 0
3 years ago
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