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postnew [5]
3 years ago
6

In times of rising prices accounting on the basis of the historical cost

Business
1 answer:
NikAS [45]3 years ago
3 0
Understate profit and inflate assets
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The "too big to fail" policy of the Fed, whereby some banks are bailed out if they are in danger of failing because they are too
Jlenok [28]

Answer:

c.Moral hazard

Explanation:

Moral hazard can occur when banks take on excessive risk more than they would normally take on because they know they would be bailed out if they fail.

I hope my answer helps you

5 0
4 years ago
Grape-Nuts was one of the first cereals that Post Cereal Company ever marketed. It scores well in brand awareness studies, but r
tatyana61 [14]

Answer:

Marketing managers should conduct market research that reveals the unmet needs of the product.

Explanation:

Market research is a detailed study of consumer behavior in a specific place, space or time. This type of research is carried out with the purpose of knowing consumer behaviors, when you want to make a change to the product / service or when you want to penetrate the market effectively; On the other hand, it is necessary to make these evaluations periodically in order to meet new customer expectations, to cope with the changes resulting from the arrival of new brands or changes in consumer habits.

3 0
3 years ago
Summarize the impact of foreign exchange rates on the company’s financial statements. What risks do foreign exchange rates pose?
VikaD [51]

Answer with Explanation:

Foreign exchange rates can have significant impact on the company's financial statements because the spot rate at that date can be affect the value of the company's assets. It is very common in consolidated financial statement of a multinational companies.

The impact on the financial statements can be as under:

  • The fluctuation in currency value can under or over statement of assets. liabilities and Income & Expenses.
  • The fluctuation makes the analysis of the financial statements meaningless. The performance of the company in a consolidated statement will be in a state that would not be better understood or time consuming by experts to develop understanding of what the financial statement is saying. It would be difficult for an ordinary person to understand the performance of the business.
  • It can also also manipulate the value of the assets of the company because increase in devaluation of the currency means increase in inflation and vice versa.
  • The value of the company acquired can be affected significantly which means that the investment (value of whole company) can turn into significant losses which means it can result reporting losses of in a consolidated financial statement. This would also result in decrease in the stock value of the group as a whole.
8 0
3 years ago
If revenues are greater than total variable costs of production but less than total costs, a firm A) earns a profit. B) suffers
vesna_86 [32]

Answer:

C) breaks even.

Explanation:

Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

Hence, if revenues are greater than total variable costs of production but less than total costs, a firm breaks even because the amount of money being generated is greater than the cost of running the business.

8 0
3 years ago
Read 2 more answers
In the beginning, a low base salary for the owner, with a bonus at the break-even point is?
frez [133]

Answer:

The best solution

Explanation:

I took the test and got it right

7 0
3 years ago
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