Answer:
e) market risk premium.
Explanation:
The slope of the security market line represents the market risk premium.
To obtain knowledge as to remember for the questions so you shall not forget
Answer:
Margin of safety= $4,257
Explanation:
Giving the following information:
The breakeven point in units is 3,400, and the expected sales in units are 4,500.
First, we need to determine the dollar amount of sales:
Break-even point= 3,400*3.87= $13,158
Current sales= 4,500*3.87= $17,415
Margin of safety= (current sales level - break-even point)
Margin of safety= 17,415 - 13,158= $4,257
Answer:
a-3 / b-2 / c-4 / d-1
Explanation:
<u>Notes to financial statements</u>: Includes a summary of significant accounting policies and explanations of specific items on the financial statements.
The notes are required by the full disclosure principle. Also referred to as footnotes. Provide additional information pertaining to a company's operations and financial position.
<u>Report of independent registered public accounting firm:</u> Attests to the fairness of the presentation of the financial statements.
is a process designed to provide reasonable assurance regarding the reliability of financial reporting.
<u>Management's discussion and analysis of financial condition and results of operations (MD&A):</u> Is written by the company to help investors understand the results of operations and the financial condition of the company.
Disclosure is mandatory where there is a known trend or uncertainty that is reasonably likely to have a material effect on the registrant's financial condition or results of operations
<u>Financial statements</u>: Includes the income statement, balance sheet, statement of stockholders' equity, and statement of cash flows.
are reports prepared by a company's management to present the financial performance and position at a point in time.