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AnnZ [28]
2 years ago
7

When analyzing financial statements it is important to recognize that accounting distortions can arise. Accounting distortions a

re those things that cause deviations in accounting information from the underlying economics. Which of the following statements is not correct? Accounting distortions:
A. can arise as management may deliberately manipulate financial statements.
B. arise often through application of (correct) accounting principles.
C. can affect the quality of earnings.
D. arise if the stock market is not efficient.
Business
1 answer:
Lunna [17]2 years ago
5 0

Answer:

The correct answer is B. arise often through application of (correct) accounting principles .

Explanation:

Accounting analysis is an important precondition for an effective financial analysis. This is because the quality of the financial analysis, and the inferences made, depends on the quality of the implicit accounting information, the raw material for the analysis. Even though the accounting according to the accumulation principle allows to perceive the financial performance and condition of a company, which is not possible in the case of cash-based accounting, the imperfections of the company can distort the economic content of the financial reports.

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Suppose a country has government expenditures of $3,500, taxes of $2,200, consumption of $9,000, exports of $2,500, imports of $
TiliK225 [7]

Answer:

The correct option is C ,$15,300

Explanation:

GDP is a short form of Gross Domestic Product which is an indicator of total goods produced in an economy in a period of one year.

Using the expenditure method,GDP van be computed using the below formula:

GDP=C+I+G+(X-M)

C is the consumption in the economy which is $9000

I is the level of investment at $3,000

G is the government expenditure of $3,500

X is the export of $2,500

M is the import of $2,700

GDP=$9000+$3000+$3500+($2500-$2700)

GDP=$15,300

Hence the GDP is $15,300

8 0
3 years ago
Which of the following is an example of economic globalization?
andreev551 [17]
D) a Japanese stores selling tea and spices from South Asia
4 0
2 years ago
According to the Investment Company Act of 1940, the definition of "investment company" could include which of the following
kicyunya [14]

Answer:

Option (B) is the right answer.

Explanation:

According to the investment company Act of 1940, the investment companies are those companies whose main business is to gathers investment capital to invest them in marketable securities.

Hence According to the scenario, the most appropriate answer is option (B).

While the other option is incorrect because of the following reason:

  • Brokers/dealers can not be considered as an investment company because they are not the company.
  • Pooled investments in metals are not an investment company but considered as the commodity pool.
  • Insurance companies are also not investment companies.

7 0
3 years ago
Carter corporation applies manufacturing overhead on the basis of machine-hours. at the beginning of the most recent year, the c
stiks02 [169]
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. 
6 0
3 years ago
You live in a community with many teenagers, and you work during the summer bagging groceries for a low hourly wage. How might l
mario62 [17]

Answer:

D. Your wages would probably be higher because demand for baggers would be higher.

Explanation:

If I live in a community with fewer teenagers looking for grocery bagging jobs, the supply of labour would be lower. This would lead to an excess of demand over supply, wages would rise as a result.

I hope my answer helps you

4 0
3 years ago
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