1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
KatRina [158]
3 years ago
14

Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and an

swer questions about its performance. Indicate which financial statement you would refer to when answering the questions in the following table:
Income Statement Statement of Retained Earnings

How profitable has the firm been?
How much of the firm's earnings are left as balance after the firm pays out dividends to its shareholders?

If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:
a. Overstate its earnings
b. Understate its earnings
Business
1 answer:
11111nata11111 [884]3 years ago
4 0

Answer:

1. Indication of financial statement to refer to when answering questions in the following table:

Question                                                   Financial Statement

How profitable has the firm been?         Income Statement

How much of the firm's earnings are     Statement of Retained Earnings

left as balance after the firm pays out

dividends to its shareholders?

2. If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:

a. Overstate its earnings

Explanation:

Company A's Income Statement shows its profit performance at different levels.  At one level is the gross profit, which shows the difference between the net sales or service revenue and the cost of sales/service.  At another level is the operating income, which is the income before interest and taxes.  The next important level is the net income, which is the profit after taxes.  This shows the earnings available for distribution to stockholders.  The Statement of Cash Flows classifies the cash flows generated into operating, investing, and financing activities, and shows the non-cash flow adjustments.

You might be interested in
Reserves$72Checkable Deposits$240 Securities110Loans from Federal Reserve Banks2 Loans60 Consolidated Balance Sheet: Federal Res
mamaluj [8]

Answer:

d. directly increase by $2 and the money-creating potential of the commercial banking system will increase by $6

Explanation:

Note: The organized table of the question is attached as picture below

Total increase in money supply = (1/Reserve ratio)*2

Total increase in money supply = (1 / 0.25) * 2

Total increase in money supply = 4 * 2

Total increase in money supply = 8.

Out of which 2 is directly increased because fed deposits 2 into checking deposits and 6 is indirectly increased.

5 0
2 years ago
The three variables which affect saving money are:
larisa [96]
It would be B, amount,interest,and time. I hope this helps you!
5 0
3 years ago
What is a sole proprietorship?
DanielleElmas [232]

Answer: A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.

3 0
3 years ago
Read 2 more answers
Rosa was promoted to a management position from her specialist role. During her previous role, she gained firsthand experience o
Andreas93 [3]

Answer: Implement teams to provide greater challenges for employees.

Explanation:

Rosa needs to form teams within the workers to reduce individuality and increase team corporation. In forming a team from employees which are specialists in several fields, a whole lot can be achieved as the different employees would contribute an aspect of their knowledge to the team success.

7 0
3 years ago
A company issues $100,000 face value, zero-coupon, 4-year U.S. corporate bonds on January 1, 20XO, when the market rate for simi
aivan3 [116]

Answer:

Amount = Maturity/(1+risk rate)⁴

Amount = $100,000/(1+0.12)⁴

Amount = $63,552 (Approx)

Interest payable = $63,552 x 0.12

Interest payable = $7,626 (Approx)

Interest payable (2nd period) = ($63,552+$7,626) x 0.12

Interest payable (2nd period) = $8,541 (Approx)

Explanation:

                           JOURNAL ENTRY

                                BOOKS OF (.....)

Date          Account title         Debit   Credit

       Cash a/c                   Dr    $63,552  

                  To Bonds payable a/c    $63,552

1st-period    

             Bond Interest a/c       Dr   $7,626

         To Bonds payable a/c                  $7,626

2nd-period  

             Bond Interest a/c       Dr   $8,541

         To Bonds payable a/c                  $8,541

6 0
2 years ago
Other questions:
  • If a manager designs the shoe department in a manner that one of its private-label pairs of shoes, priced at $39.99, is position
    5·1 answer
  • For each hour of production, a certain factory requires 1 assembly line worker for every 25 units to be produced in that hour. T
    10·1 answer
  • A store that sells books and a store that sells tools are what type of competitors? (Select the best answer.) Indirect competito
    10·1 answer
  • A 6% pay increase to your current $62,900 annual salary. "thanks, i look forward to the additional __________ per month."
    9·1 answer
  • As a pensioner A staffing firm provides landscaping services for clients on an ongoing basis. The staffing firm selects and pays
    14·1 answer
  • Foreign managers trained in the latest management techniques can often help to improve the efficiency of operations in the host
    14·1 answer
  • Mary agrees with this logic: if all violins are musical instruments, and if all musical instruments make noise, then all violins
    15·1 answer
  • 1. Net income was $60,100. 2. Equipment (cost $21,770 and accumulated depreciation $9,770) was sold for $11,770. 3. Depreciation
    14·1 answer
  • Miller and Sons' static budget for 10,300 units of production includes $36,800 for direct materials, $48,500 for direct labor, v
    6·1 answer
  • The Conner Company uses a two-step process for making wooden boards with holes in them. Step 1 is drilling and Step 2 is sanding
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!