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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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A firm using a _____ strategy tries to balance the desire for efficiency with the need to adjust to local preferences within var
Svetradugi [14.3K]

Answer: (D) Transnational    

Explanation:

 The transnational strategy is one of the type of global business strategy in which the various types of products and the services are get promoted globally and this type of strategy basically using the personalized approach for promoting the brands and the products in the market by targeting the consumers or audience.

 The main advantage of the transnational strategy is to providing the various types of simultaneous function in the multiple countries.  

According to the given question, the company using a transnational strategy for the purpose of balancing the efficiency to adjust the local preferences in the various types of other countries.          

 Therefore, Option (D) is correct answer.

4 0
3 years ago
In scheduling your time, which of the following will help you reach your goals?
Digiron [165]

Answer:

d) all of the above

Explanation:

they all help you reach your goals

4 0
3 years ago
One of the most challenging tasks for any firm, including In Fine Fettle, is determining how much to spend on promotion. Four ba
Montano1993 [528]

Answer:

A) the affordable method,

In Fine Fettle's management reviews what it is trying to achieve with promotion and sets the budget based on anticipated expenses.

B) the percentage-of-sales method,

In Fine Fettle's management reviews its forecasted sales volume for the turmeric bar and sets is promotional budget at $150,000.

C) the competitive-parity method,

In Fine Fettle looks at its competitors and finds that their average promotional spending ranges from $100,000 to $250,000. Therefore, the promotional budget is set at $200,000.

D) the objective-and-task method.

In Fine Fettle's management reviews its revenues and expenses and allocates promotional spending based on what management believes it has to spend

Explanation:

A) is deciding the promotion expense considering how much can afford based on the expenses budget

B) determninate the promotion based on a percentage of expected sales

C) the company will look at their competitors promotion expense and try to keep up with that level to avoid being left behind

D) management will determinate on a monthly/ weekly basis where and how much to promote

8 0
4 years ago
Art, Inc., has 2,500 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock out
stepladder [879]

Answer:

The amount of dividend received by common stockholders in 2017 = $7500

Explanation:

The preference shares are cumulative which means the 2015 dividend on cumulative preference shares will be paid in the next year when dividend is declatred.

The total dividend on preference shjares is = 2500 * 100 * 0.05 = $12500

In 2016 dividend of 22500 is declared and paid.

Out of this 22500, 12500 relates to prefernece dividend for 2015.

The remaining 10000 relates to 2016 preference dividend. Thus, 2500 of 2016 preference dividned is outstanding and will be paid in 2017.

In 2017 out of 22500, 15000 (12500 + 2500) dividendd is paid to preference share holders.

The amount of dividend received by common stockholders in 2017 = 22500 - 15000 = $7500

7 0
4 years ago
When a scientific number is the result of a measurement using equipment such as a balance, the last digit is ______?
zhuklara [117]
The answer is <span>the last digit is "estimated".
</span>
The Scientific notation or configuration shows a number in exponential notation, by replacing some portion of the number with E+n, where E (which remains for Exponent) duplicates the first number by 10 to the nth power. For instance, a 2-decimal Scientific notation shows 12345678901 as 1.23E+10, which is 1.23 times 10 to the tenth power. Hope this helps!
5 0
3 years ago
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