All categories

4 years ago

When you are interpreting financial ratios, it is useful to compare a company's ratios to some form of standard. true?

1 answer:

5 0

The statement is true. A financial ratio or also known as the accounting ratio is a relative size of two chose numerical esteems taken from a venture's monetary articulations. Regularly utilized as a part of bookkeeping, there are numerous standard proportions used to endeavor to assess the general monetary state of a partnership or other association.

You might be interested in

Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $7,400 cash and

adelina 88 [10]

Answer:

Pose-for-Pics

1. T-accounts:

Cash

Date Account Title Debit Credit

Aug. 1 Common stock $7,400

Aug. 2 Prepaid insurance $3,000

Aug. 5 Office supplies 970

Aug. 20 Photography Fees 4,231

Aug. 31 Utilities 765

Aug. 31 Balance $6,896

Common Stock

Date Account Title Debit Credit

Aug. 1 Cash $7,400

Aug. 1 Photography equipment 34,400

Aug. 31 Balance $41,800

Photography Equipment

Date Account Title Debit Credit

Aug. 1 Common stock $34,400

Prepaid Insurance

Date Account Title Debit Credit

Aug. 1 Cash $3,000

Office Supplies

Date Account Title Debit Credit

Aug. 1 Cash $970

Photography Fees

Date Account Title Debit Credit

Aug. 20 Cash $4,231

Utilities Expense

Date Account Title Debit Credit

Aug. 31 Cash $765

2. Trial Balance

As of August 31

Account Title Debit Credit

Cash $6,896

Common stock $41,800

Equipment 34,400

Prepaid insurance 3,000

Office supplies 970

Photography fees 4,231

Utilities expense 765

Totals $46,031 $46,031

Explanation:

Before transactions are posted to the T-accounts (General Ledger) they are recorded in the General Journal. The T-accounts summarize the transactions into various ledger accounts. Periodically, the accounts are balanced and a trial balance is extracted to check if the posting is error-free.

6 0

3 years ago

If a management team wishes to undertake efforts specifically aimed at helping the company meet or beat the investor-expected in

dusya [7]

Boom general operating profits in all four geographic areas -- the resulting growth in working earnings will improve general net income and assist increase the EPS, using the business enterprise's stock fee upward.

Due to the fact, that the boom in EPS can bring about an elevated and strong dividend, and thus can have an impact on the investors to buy the stocks, resulting in a boom in stock prices.

The inventory price is a relative and proportional price of an organization's worth. consequently, it only represents a percent alternate in an organization's market cap at any given factor in time. Any percentage adjustments in an inventory fee will bring about the same percent trade in a company's marketplace cap.

A percentage fee is the rate of an unmarried proportion of a number of saleable equity shares of an organization. In layman's terms, the stock price is the best amount someone is willing to pay for the inventory, or the bottom amount that it can be bought for.

Learn more about company's stock price here: brainly.com/question/25818989

#SPJ4

5 0

1 year ago

Which program provides lump-sum compensation and health benefits for eligible Department of Energy nuclear weapons workers injur

pickupchik [31]

Answer: Energy Employees Occupational Illness Compensation Program (EECICP)

Explanation:

Much like private companies, the Federal government is also required to insure its workers and this is regulated under the Office of Workers' Compensation Programs (OWCP). There are several compensation programs but the relevant one here is the EECICP.

The EECICP is for federal employees in the Department of Energy as well as agencies related to them. This also includes contractors and subcontractors. Under this program, eligible workers who got injured are entitled to a lump-sum compensation as well as health benefits. If the worker dies as a result of the injuries however, a lump-sum might go to their survivors instead.

8 0

3 years ago

If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, th

Sloan [31]

If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, the interest rate will rise, causing households and businesses to hold less money.

Option A

<u>Explanation: </u>

Fiscal policy is the central bank's macroeconomic policy. This covers the supply of money and interest rate control and is also the demand-side economic strategy of a country's government for achieving macroeconomic targets such as inflation, investment, productivity, and liquidity.

If the required quantity is above the amount given, people sell the property to obtain money like bonds. It leads to an increase in bond supply, a drop in bond prices and a higher market interest rate. If the volume supplied meets the necessary number, capital is increasing by purchasing a certain property, such as bonds.

The supply of money meets the demand for money, and the real rate of interest is higher than the number of equilibrium.

7 0

3 years ago

BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to

suter [353]

Answer:

a) For MACHINE A

Net Present Value (NPV) 7208

Internal Rate of Return (IRR) 11,48%

For MACHINE B

Net Present Value (NPV) -13468

Internal Rate of Return (IRR) 6,99%

b)BAK Corp should buy MACHINE A

Explanation:

We use excel or a spreadsheet to calculate net present value and the profitability index of each machine. See document attached.

We use a cash flow to solve this problem.

At moment 0 we have the investment cost , in this case Original cost $76,700 $183,000 for Machine A and Machine B . From period 1 to period 8, we have inflows and outflow. (Estimated annual cash inflows $20,200 $40,500

Estimated annual cash outflows $5,040 $9,870).

Then, we calculate the Net cash flow that is the difference between benefits and cost.

We use all the result (positive and negative) in Net cash flow to get the profitability index, IRR.

Download xlsx

8 0

3 years ago