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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.

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Main memory divided into a number of static partitions at system generation time is _______ .
crimeas [40]

The main memory divided into a number of static partitions at system generation time is fixed partitioning.

<h3>What is the main memory?</h3>

Memory is a computing term for a system or device that stores data for immediate use in a computer, computer hardware, or other digital electronic devices. The terms main memory and primary storage are frequently used interchangeably. The store is a dated word for memory.

The principal internal storage area in a computer, sometimes known as RAM, is the main memory (random access memory). Specs like 4GB, 8GB, 12GB, and 16GB usually invariably relate to the RAM's storage capacity. On the other hand, a computer's disk or solid-state storage capabilities are commonly 128GB or 256GB or greater.

Fixed partitioning refers to the division of the system's main memory into a number of static partitions.

To learn more about main memory refer to:

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4 0
2 years ago
What serves as an incentive for entrepreneurs
nordsb [41]
Profit is the answer
3 0
3 years ago
Read 2 more answers
Owner's equity at the start of the period is $35,000; net income for the period is $30,000; the total investments by the owner a
inysia [295]

Answer:

Option "B" is the correct answer to the following question.

Explanation:

Given:

Owner's equity (Opening) = $35,000

Net income = $30,000

Investments by owner = $15,000

Withdrawals = $5,000.

Owner's equity (Closing) = ?

Computation of closing equity:

Owner's equity (Closing) = Owner's equity (Opening) + Net income + Investments - Withdrawals

Owner's equity (Closing) = $35,000 + 30,000 + $15,000 - $5,000

Owner's equity (Closing) = $80,000 - $5,000

Owner's equity (Closing) = $75,000

3 0
3 years ago
Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $2,400 million in the coming year. In addition,
cupoosta [38]

Answer:

FCF = $1,995 million

Explanation:

DATA

EBIT(1-T) = $2,400 million

Net Capital Expenditure = $360 million

Net operating working capital (NOWC) = $45 million

Free cash flow (FCF) expected to generate over next year can be calculated as

FCF = EBIT(1-T) - Capital Expenditure - Net operating working capital (NOWC)

FCF = $2,400 million - $360 million - $45million

FCF = $1,995 million

8 0
2 years ago
owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for
lyudmila [28]

Answer:

The question is incomplete, so I looked for a similar one online and found this one:

Chad owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $1,200,000 and $450,000 respectively. During the current year, the properties are sold for $1,650,000 with 35% of the selling price being allocated to the land. The assets as shown on the taxpayer's books before their sale are as follows:

Building $1,200,000

Accumulated depreciation $1,125,000

Land $450,000

a.What is the recognized gain due to the sale of the building?

b. What is the character of the recognized gain due to the sale of the building?

c. What is the recognized gain and character of the gain due to the sale of the land?

a) recognized gain = sales price - book value = ($1,650,000 x 65%) - ($1,200,000 - $1,125,000) = $1,072,500 - $75,000 = $997,500

b) this gain should be recognized as along term capital gain since Chad owned the building and land for more than 1 year.

c) recognized gain = ($1,650,000 x 35%) - $450,000 = $577,500 - $450,000 = $127,500 ⇒ long term capital gain

land is not depreciable

8 0
2 years ago
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