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jeka94
3 years ago
9

One result of earnings management is:a.It brings into question the quality of earningsb.It uses a non-GAAP financial measure to

manipulate earningsc.EBITDA does not reflect GAAP earningsd.It improves shareholder returns over time
Business
1 answer:
HACTEHA [7]3 years ago
4 0

Answer:

The correct answer is A. It brings into question the quality of earnings.

Explanation:

It will be taken as management to the action of administering in the most efficient way to that profit that we obtained. When talking about efficiency, it points to the idea that money made up of profit must be spent intelligently.

To understand that not all money from a profit must be spent on personal matters. This does not mean that a certain part is not destined for it, because otherwise there will be no motivation to generate profit on a personal level. That is why it is important to know how to distribute the profit obtained in the most intelligent way possible. For this you only have to allocate 60% (the percentage is estimated the same can vary), to spend the money of a profit on personal expenses. Then one wonders what will happen with the remaining 40% (estimated percentage)? This is where intelligence comes in to manage the profit, this percentage must be used for reinvestment and also to form a contingency fund. This seeks to generate a multiplier effect of the capital earned and also form a "cushion" (savings) for when things are not right.

This type of profit management can be applied either at the company level: where part of the profit is reinvested to grow the business. And in turn it forms a contingency fund for any mishap that can be generated over time.

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A monopoly market is characterized by the inverse demand curve P = 1,200 – 40 Q and a constant marginal cost of $200. If the mar
Sergeeva-Olga [200]

Answer:

The profit maximizing output level declines by 2.5 units and the price rises by $100.

Explanation:

In a monopoly market the inverse demand curve is given as,

P = 1,200 - 40Q

The marginal cost of production of the last unit is $200.

The total revenue is

= Price\times Quantity

= 1,200Q - 40Q^{2}

The marginal revenue of the last unit is

= \frac{d}{dx} TR

= 1,200 - 80Q

At equilibrium the marginal revenue is equal to marginal price,

MR = MC

1,200 - 80Q = 200

80Q = 1,000

Q = 12.5

Putting the value of Q in the inverse demand function,

P = 1,200 - 40\times 12.5

P = $700

Now, if the marginal cost rises to $400,

At equilibrium the marginal revenue is equal to marginal price,

MR = MC

1,200 - 80Q = 400

80Q = 800

Q = 10

Putting the value of Q in the inverse demand function,

P = 1,200 - 40\times 10

P = $800

4 0
3 years ago
If a firm's forecasted sales are $280,000 and its break-even sales are $198,800, the margin of safety (in dollars) is:
Vinvika [58]

280000 - 198800 = 81200
5 0
3 years ago
pryor frosted flakes company offers its customers a pottery cereal bowl if they send in 4 boxtops from flakes boxes and $1.00. T
trasher [3.6K]

Answer: $30,000

Explanation:

Company estimates that 60% of boxtops will be redeemed.

They sold 500,000 boxes

= 500,000 * 60%

= 300,000 boxtops will be sent in.

So far, 220,000 have been sent in. How many left;

= 300,000 - 220,000

= 80,000 boxtops are still to be sent in

4 boxtops are needed to receive a pottery bowl so with 80,000;

= 80,000/4

= 20,000 pottery bowls are due to be issued.

Each bowl costs $2.50 to make.  Customers will send in $1 however so effectively it will cost the company;

= 2.50 - 1

= $1.50

With 20,000 still left to be issued, each costing $1.50, the total liabilitiy for outstanding premiums to be recorded at the end of 2007 is;

= 20,000 * 1.5

= $30,000

4 0
2 years ago
Andrew’s coworkers often come to him for information about how their company handled disgruntled customers in the past since he
My name is Ann [436]

Answer:

option d is right

Explanation:

given that Andrew’s coworkers often come to him for information about how their company handled disgruntled customers in the past since he has worked at the company for 25 years.

He heard lots of information about the way things have been handled in the past, which helped him understand the organizational system.

Andrew’s information is an example of __Cultural____ knowledge.

This is because he knows some cultural characteristics, belief, history, and also behaviours due to his vast experience of 25 years and he shares with others.\

It is not explicit because not written and source is not mentioned

It is not descriptive, because data is not supported for his verdict.

It is not vigilant, because vigilant information is parted only to prevent frauds, or any illegal or unwarranted activity or behaviour.

Hence option d is right

3 0
3 years ago
If buyers in this market have to wait in line to purchase this good after a $1 price ceiling is imposed, each buyer purchases on
Sophie [7]

The waiting time will be 30 minutes because 30 minutes at $8 per hour adds $4 to the price. Therefore, making the full price equal to $5 for each buyer clears the market.

<h3>What is the price ceiling?</h3>

A price ceiling is a price control mechanism by the government to intervene in the market forces of demand and supply by setting a maximum price.

While price ceilings are imposed to make prices low for consumers, it may cause shortages in the quantities supplied.

Thus, the waiting time will be 30 minutes because 30 minutes at $8 per hour adds $4 to the price.

Learn more about price ceilings at brainly.com/question/4120465

#SPJ12

3 0
1 year ago
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