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
olga_2 [115]
3 years ago
6

Which of the following statements represent a weakness or limitation of ratio analysis? Check all that apply. A firm may operate

in multiple industries. A firm’s financial statements show only one period of financial data. Different firms may use different accounting practices.
Business
1 answer:
Art [367]3 years ago
4 0

Answer: A firm may operate in multiple industries.

Different firms may use different accounting practices.

Explanation:

Ratio Analysis as you probably know is a very useful tool in financial analysis. It works by comparing ratios based on items in the financial statements of a company to measure certain things such as the Company's Liquidity, Profitability and the like.

It does have certain drawbacks though such as,

A firm may operate in multiple industries

When a firm is operating in multiple industries. Comparing ratios is not a simple task. Different industries record profits and costs differently and just because a ratio is held in high esteem on one company does not mean it is good in another thereby making comparison based on ratios alone quite cumbersome.

Different firms may use different accounting practices

Now if different companies use different Accounting practices, you might find that ratios cannot be straightforwardly compared because different types of figures were used by the different companies. For instance, some companies might use a Straight Line Depreciation method as opposed to a Reducing Balance method which will have varying effects on income.

You might be interested in
Which of the following is absolutely necessary for successful implementation and operation of MRP? (I) accurate inventory record
frez [133]

Answer:

(A) I, II, and IV only

Explanation:

The Material Requirements Planning MRP is used to calculate tha materials needed for production. It may be done by software but it can be done without any technological tool.

The most important information for MRP is about the available inventory for future production, in this way the company will know what materials are needed for future production. To provide the materials on time it is necessary to know the master schedules of production, making sure that the supplies will be ready on time for manufacturing process. Finally, the accurate Bills of materials are used as a check list to verify that there is not any pending component for the production process. Even when the MRP may include costs, it is not a vital component for the system and some companies can have MRP without including costs.

4 0
3 years ago
OKRs can be executed in stages. The first stage would be keyed to a deadline and then then once the project is completed and run
DerKrebs [107]

Answer:

b) false

Explanation:

OKR is a goal-setting method used by companies. It is impleemented using following steps

  • Communicate the OKR
  • Choose a tool used for OKR
  • Organize the Company's OKR
  • Set the company's OKR
  • Set every single OKR for teams, departments and Individuals
  • Make the changes in OKR if required
  • Approve the OKR
  • Evaluate the OKR at each period end.

So, the OKR cannot be implemented in a single step and it requires multiple steps.

Hence the given statement is false.

4 0
3 years ago
One of your customers is delinquent on his accounts payable balance. you’ve mutually agreed to a repayment schedule of $750 per
liubo4ka [24]
In this problem, we need to find the length of an annuity. We already identified the interest rate, the PV, and the payments.
Using the PVA equation: PVA =C({1 – [1/(1 +r)t]} /r
$18,000 = $750{[1 – (1/1.019) t] / 0.019}
Then solve for t:
1/1.019t= 1 − {[($18,000)/($750)](0.019)}
1/1.019t= 0.544
1.019t= 1/(0.544) = 1.838
t= ln 2.193 / ln 1.019 = 32.34 months or 2.7 in years
4 0
3 years ago
People keep in contact using social media sites, including Facebook, Google Plus, and YouTube. Increasingly, these sites are use
Julli [10]
The answer is 4% on his return
3 0
3 years ago
Read 2 more answers
Globalization of Market is taking place because of ___________.
ozzi
Because it involves the growing in third dependency among. The Konomi‘s of the world; mold to national nature of sourcing, manufacturing, trading and investment activities increasing frequency of cross-border.
7 0
2 years ago
Other questions:
  • Wade paid $7,000 for an automobile that needed substantial repairs. he worked nights and weekends to restore the car and spent $
    9·1 answer
  • The following amounts are reported in the ledger of Mariah Company: Assets $ 78,000 Liabilities 41,000 Retained Earnings 9,000 W
    8·1 answer
  • Decide which business structure makes the
    8·1 answer
  • The strategic goal of __________ involves going after countries that offer a firm with the highest price of its products and ser
    14·1 answer
  • Isle Co. owned a copy machine that cost $5,000 and had accumulated depreciation of $2,000. Isle exchanged the copy machine for a
    12·1 answer
  • How much money should a couple who makes $54,000 a year have in their beginner emergency fund if they have a $3,000 credit card
    10·1 answer
  • Harry Rawlings wants to withdraw $10,000 (including principal) from an investment fund at the end of each year for 5 years. How
    6·1 answer
  • The trial balance of Barger Company at the end of the accounting period, immediately prior to recording closing entries, showed
    9·1 answer
  • The San Pedro Company forecasts that total overhead for the current year will be $10,000,000 and that total machine hours will b
    14·1 answer
  • Rodney (a fictional person) was self-employed, running a successful business, seemingly healthy, and never thought he would have
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!