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Zanzabum
3 years ago
11

What factors warrant special attention in appraising a firm’s inventory, equipment and accounts receivable?

Business
1 answer:
melisa1 [442]3 years ago
4 0

Answer:

First, factors warrant special attention in appraising a company's <em>inventory </em>is that it is unnecessary for you to accept the value that is already set by the seller. It is a major point to have a deal, a negotiation about the value of it.

Secondly, about the firm's equipment, it should be evaluate based on its value, current condition with any damage or depreciation, the age of using as well as whether it is leased or purchased asset.

Last, about account receivable, it is essential when appraising to look in the longer period of time, breaking the balance sheet of the account into 30, 60 or 90+ days. It can be concluded that the longer the accounts are outstanding, the less valuable that its assets are.

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If the U.S. capital markets are not informationally efficient, ______.A. the markets cannot be allocationally efficientB. system
Firdavs [7]

Answer:

A. the markets cannot be allocationally efficient

Explanation:

If the U.S. capital markets are not informationally efficient, the markets cannot be allocationally efficient

5 0
3 years ago
Ginny and Eric are partners at an architecture firm. They are trying to determine which of them has a comparative advantage in b
blondinia [14]

Answer: (i) $20 per model

(ii) $27 per model

(iii) Ginny has a comparative advantage in building models.

Explanation:

A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodities is lower than the other country or firm.

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

Therefore,

Ginny's Opportunity cost of producing one model = \frac{400}{20}

                                                                                      = $20 per model

Eric’s opportunity cost of building models = $20 + 35% of $20

                                                                      = $20 + $7

                                                                      = $27 per model

Hence, Ginny has a comparative advantage in building models because Ginny's opportunity cost of building model is lower than Eric's opportunity cost.

5 0
3 years ago
Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2020. The sales price includes an insta
Mrrafil [7]

Answer:

January 2, 2020

Dr Accounts receivable 410,000

    Cr Sales revenue 370,000

    Cr Unearned revenue 40,000

Dr Cost of goods sold 300,000

    Cr Merchandise inventory 300,000

Accrual accounting states that revenues must be recognized during the periods that they actually occur (i.e. the earning process is completed). Since the installation process lasts 6 months, the unearned revenue will be recognized as the process is being completed.

4 0
3 years ago
The __________ phase is probably the single most important determinant of shareholder value creation in mergers and acquisitions
BARSIC [14]

Answer: Post acquisition integration (B)

Explanation:

Post acquisition integration is a complex process of rearranging and combining businesses to materialize the potential efficiencies and synergies which usually motivate acquisitions and mergers.

The process, is usually lengthy and resource intensive. The importance of post acquisition integration cannot be understated, as it allows an acquiror to acquire the long-term value that he or she seeks from the transaction. It is a vital determinant on value creation for the shareholders in acquisitions and mergers.

6 0
3 years ago
Read 2 more answers
You work for a tech firm that wants to invest in some capital development projects that could potentially position the company a
Murljashka [212]

Answer:

B) User

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8 0
3 years ago
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