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kenny6666 [7]
3 years ago
6

Financial statements are optional accounting reports issued periodically by a firm which present information on the past perform

ance of the​ firm, a summary of the​ firm's assets and the financing of those​ assets, and a prediction of the​ firm's future performance.
True / False.
Business
2 answers:
disa [49]3 years ago
8 0

Answer:

False

Explanation:

Financial statements are not optional, several government entities require companies to present them, and if it is a traded company, then the requirements are even more, e.g. IRS, state and local taxing entities, SEC.

The next part of the statement was almost right:

  • financial statements are issued periodically (corporations issue them quarterly, other companies must issue yearly reports)
  • the balance sheet is a summary of the firm's assets and how they are financed

But the last part was wrong: prediction of the firm's future performance. Accounting doesn't predict anything, it reports past transactions. My accounting professor always referred to accounting records as pictures of the company, they show you how the company was at a certain point in time. Financial statements can even change significantly from the moment that they are prepared (e.g. December 31) until the moment that they are finished (around February-March). No company presents their financial statements on January 2, even individuals are aloud to present their personal tax filing by April.

goldfiish [28.3K]3 years ago
7 0

Answer:

False

Explanation:

Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.

These documents play a pivotal role in a financial institution, thus, not optional.

Cheers

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Otrada [13]

Answer: D. will be less than the intrinsic value of stock Y

Explanation:

Based on the information given above, the intrinsic value of Stock X will be calculated thus:

D1 = Dividend in next year = $3

g = growth rate = 7%

r = = 13%

Therefore, intrinsic value of Stock X will be:

= D1 / (r-g)

= 3 / (13% - 7%)

= 3/6%

= 3 / 0.06

= $50

Therefore, the intrinsic value of stock X is $50.

Intrinsic value of Stock Y will b calculated thus:

D1 = $4

g = 7%

r = 13%

Intrinsic value of Stock Y will be:

= D1 / (r-g)

= 4 / (13% - 7%)

= 4/6%

= 4 / 0.06

= 66.67

Intrinsic value of Stock Y is $66.67

Therefore, the intrinsic value of Stock X will be less than the intrinsic value of Stock Y

8 0
3 years ago
Why should I prepare myself to be career-ready in multiple career clusters ? (3-4 sentences )
marin [14]

Answer:

Knowing the projected growth trends of your desired future career can help you map out a career trajectory

Find out who the big players are in your desired industry.

Interacting and networking with others can keep you in the loop when it comes to your future career.

Explanation:

5 0
2 years ago
Speaker City designs and manufactures high-end home theater speakers. Speaker City uses a standard overhead rate of 2.0 hours pe
olya-2409 [2.1K]

Answer:

$18,100 unfavorable

Explanation:

The computation of the total variable overhead variance is shown below:

Total variable overhead variance = Standard variable overhead cost - Actual variable overhead cost

where,

Standard variable overhead cost is

= 2 hours × 400 units × $8 per hour

= $6,400

And, the actual variable overhead cost is $24,500

So, the  total variable overhead variance is

= $6,400 - $24,500

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Since the actual variable overhead cost exceeds then the standard variable overhead cost so it reflects the unfavorable variance

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2 years ago
Production refers to all the activities and processes used in making both tangible and intangible products.
Rzqust [24]

Usually everything would be intangible, I want to say is false

7 0
3 years ago
The leaders of a religious group decided to start a life insurance organization to insure members of the religious group. The in
Vladimir [108]

Answer:

C) fraternal insurer.

Explanation:

A fraternal insurer issues fraternal life insurance which is an insurance covered by a non-profit organization that offers this service to its members.

This insurance works in a similar fashion to normal insurance policies where the insured must pay monthly fees which are called contributions in this case.

Fraternal insurance policies must be provided by fraternal benefit societies which can be religious, ethnic or vocational. Generally most fraternal insurance provide life insurance policies only, and in order to be a client you must belong to their church or group.

7 0
2 years ago
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