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AURORKA [14]
3 years ago
6

Common-size statements​ ________. A. show the same percentages that appear in a horizontal analysis B. report dollar amounts and

percentages C. allow the users to compare numbers in relative terms rather than absolute amounts D. create a dollar value bias
Business
1 answer:
igor_vitrenko [27]3 years ago
6 0

Answer: C. allow the users to compare numbers in relative terms rather than absolute amounts

Explanation:

By expressing every item as a percentage of sales or revenue, users of these statements are able to compare figures on a relative term. With the relativity being related to the aforementioned sales or revenue.

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"I am 27 years old and have just finished law school and passed the state bar examination. Now I am ready to begin my new career
Eduardwww [97]

Answer:

The advantages of starting own business:

  • Flexibility: a person who starts his own business does not necessarily have to work 9/5 monday-friday, he can  set his own schedule. Needless to say, many business owners work longer hours than regular employees, but the do so because of the hope to earn more money from profits than from a regular wage.
  • The possibility of profit: an employee in a legal firm will not be able to obtain any dividends (unless he owns stock), while the very definition of a business owner is someone who obtains profits.
  • Fulfillment: it is probably more fulfilling to see your own business develop and grow than go to work everyday for someone else's company.

Some disdavantages are:

  • Risk: starting a business is risky. The business might result in losses instead of profits, in other words, the business may fail.
  • Capital needs: to start a business, you need some capital, and it is not always easy to obtain. Most business owners either get debts, or liquidate some of their own assets (house, car, etc) to finance the company.
  • Longer work hours: as stated above, it's very likely that a business owner will have to work night and day, especially during the first stages.

8 0
3 years ago
Serena the Chief Financial Officer has a decision to make. She has to rank several alternatives for purchasing a new piece of eq
emmainna [20.7K]

Answer: Capital rationing

Explanation:

Capital Rationing occurs when a firm has to ration capital because there's no enough fund to invest in all the attractive projects.

Capital rationing is used by companies in order to limit the number of projects which they'll invest in at a time.

Since Serena has to rank several alternatives for purchasing a new piece of equipment based on the fact that there is constraint with regards to the availability of funds, this is capital rationing.

3 0
2 years ago
Patti Company owns 80% of the common stock of Shannon, Inc. In the current year, Patti reports sales of $10,000,000 and cost of
Elden [556K]

Answer:

$10,140,000

Explanation:

To make consolidated statements company needs to consolidate the financial data of its own and its subsidiary.

Revenue can be consolidated of parent and subsidiary as follow:

First

Add revenue of both companies

Total Sales = Patti Company sales + Shannon Inc. sales

Total Sales = $10,000,000 + $200,000 = $10,200,000

Now deduct the sale made to each other because sales mad within the group is not recorded for consolidation purposes and it is not a sale for a group it is an internal group transfer.

Consolidated Sales = Total sales - Internal Sales

Consolidated Sales = $10,200,000 - $60,000 = $10,140,000

8 0
3 years ago
Saffron Industries most recent balance sheet reports total assets of $42,000,000, total liabilities of $16,000,000 and stockhold
alexandr402 [8]

Answer:

A) Prepaying the debt would cause the firm's debt-to-equity ratio to improve from .62 to .50.

Explanation:

The computation of the impact is as follows:

The Debt equity ratio is

= Total liabilities ÷ total equity

Now

Debt equity prior to payment is

= $16,000,000 ÷ $26,000,000

= 0.62

And,

Debt equity after payment is

= $13,000,000 ÷ $26,000,000

= 0.50

So here as we can see that the debt equity would be improved from 0.62 to 0.50

Therefore the correct option is a.

7 0
3 years ago
Which of these is an example of an entrepreneur?
Lubov Fominskaja [6]
Option A. Jessie has the idea for a new phone app so he spend his money to set up a business
8 0
3 years ago
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