All categories

4 years ago

A limitation of ratio analysis is that:

Business

1 answer:

AleksAgata [21]4 years ago

8 0

Answer:

The correct answer is letter "D": window-dressing techniques will change the ratios of a firm.

Explanation:

Ratio analysis is a tool that helps entrepreneurs to find out information about the performance of a company taking as a feed the data provided in the company's financial statements. However, there are limitations of ratio analysis such as the fact that firms make changes over the end of the year so that the ratios modify. This practice is called window-dressing.

Besides, ratio analysis takes into account the monetary aspects of the company only but not qualitative features. Also, ratio analysis ignores the changes in price as a result of inflation since they use historical costs making the ratio inaccurate at the moment of the calculation.

You might be interested in

Rachel's Designs has 2,000 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining

pantera1 [17]

Answer:

Dividend of preferred shares = No of shares * Dividend percent * Par value of shares = 2,000 * 7% * $50 = $7,000

Hence, dividend in arrears for the year 2019 and 2020 is $14,000 ($7,000+$7,000). Dividend for 2021 is $7,000

Description Amount

Preferred dividend in arrear for the year 2019 and 2020 $14,000

Add: Preferred dividend for the year 2021 $7,000

Total preferred dividend $21,000

Less: Total dividend $23,000

Dividend for common shareholder ($2,000)

Hence, dividend paid for cumulative preferred share in the year 2021 is $21,000 and the amount paid for common shareholders is $2,000

8 0

4 years ago

"A broker-dealer who acted as financial advisor to a municipality in structuring a new issue now wishes to act as underwriter in

maxonik [38]

Answer:

B. The financial advisor is prohibited from acting as the underwriter

Explanation:

As per the rule of the Municipal Securities Rulemaking Board, the financial advisor cannot be the underwriter.

The financial advisor for a municipality is paying the advisory fee for assisting the structure of the municipality in order to the issuance of the new bond so that the less interest cost to be paid.

But in the case of the underwriter, it contains high rate of interest as it is very easiest way for selling

So through this, the conflict arises between these two parties

Therefore option B is correct

3 0

3 years ago

Suppose that you run a house-painting company and currently have 2 workers painting a total of 4 houses per month. If you hire a

andrew11 [14]

Answer:

b. set in when the fifth worker is hired

After this point additional worker return will be lower.

Explanation:

Trhe diminishing return are the moment at which the marginal increase in production decrease.

In other words, adding a new resource provide less return than his predecessor.

Marginal

2 do 4 hours

3 do 6 houses (marginal 6 - 4 = 2)

4 do 9 houses (marginal 9 - 6 = 3)

5 do 13 houses (marginal 13 - 9 = 4)

6 do 15 houses (marginal 15 - 13 = 2)

the marginal output decrease from 4 to 2 the returns decreased.

5 0

3 years ago

What do you mean by public service?

Inessa05 [86]

A public service is something provided by the government or another official entity for the benefit of all members of a society or community, such as health care, transportation, or garbage management.

Any service designed to meet the specific needs of the total population of a community is considered a public service. People who live in a government jurisdiction can access public services directly from public sector organizations or through public financing of private companies or nonprofits (or even as provided by family households, though terminology may differ depending on context). Other public services are provided on behalf of or in the best interests of the citizens of a government. The phrase refers to a social consensus .

Learn more about public service here.

brainly.com/question/28161669

#SPJ1

6 0

2 years ago

The marketing concept states that the social and economic justification for an organization’s existence is the satisfaction of c

Goshia [24]

Answer:

True

Explanation:

The satisfaction of customer is the key need of survival for any business.

As the customer satisfaction will result into good branding, economic support and vital performance booster for the organisation.

Customer satisfaction ensures that the organization is socially and economically viable, and equally capable of running business with the perspective of growth.

Thus the above stated statement is

True

7 0

4 years ago

A limitation of ratio analysis is that:​

A limitation of ratio analysis is that: