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Lerok [7]
3 years ago
6

Independent auditing can best be described as:________. A. A regulatory function that prevents the issuance of improper financia

l information. B. A branch of accounting. C. A discipline that enhances the degree of confidence that users can place in financial statements. D. A professional activity that measures and communicates financial and business data.
Business
1 answer:
Elden [556K]3 years ago
8 0

Answer:

C. A discipline that enhances the degree of confidence that users can place in financial statements.

Explanation:

Independent auditing includes the process of auditing by an independent auditor. It involves the process of analyzing and examining the financial transactions and records. The company's accounts, the business records, the transactions are all monitored and audited so as to avoid any unprecedented act. It do not indulge any means of profit in the whole process. Independent auditing is adopted by the shareholders in order to protect from any sort of frauds or unacceptable claims made in terms of financial records.  

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A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights in
stich3 [128]

Answer:

<h2>First Part</h2>

1. True

Liquidity ratios such as the Current ratio are used to show that a company can cover its short-term obligations.

2. True

Asset management ratios juxtapose a company's performance vs its long term assets and so provide insights into management's efficiency.

3. False

Debt management ratios show how much of the company is funded by total debt not whether it has sufficient cash to repay its short- term debt obligations.

4. True

Profitability ratios take into account how much income is raised by a company so when this increases, the ratios will as well.

5. True

Market-Value ratios show the firm's value in the market which is a reflection of what investors and the markets think about the firm's growth prospects or current and future operational performance.

<h2>Second Part</h2>

The Weakness/ Limitations are;

a. A firm may operate in multiple industries.

Should this be the case, the company's performance in one sector cannot necessarily be compared to companies that operate in that single sector because it would not take into account the company's other sectors which may impact figures.

c. Different firms may use different accounting practices.

When different accounting practices are used, ratio analysis may not be a true indication of the situations in the company. For instance, a company using LIFO cannot be effectively compared to a company using FIFO when using ratio analysis.

6 0
3 years ago
What are the function of a refrigerator ​
USPshnik [31]

Answer:

The Purpose of Refrigeration. The fundamental reason for having a refrigerator is to keep food cold. Cold temperatures help food stay fresh longer. The basic idea behind refrigeration is to slow down the activity of bacteria (which all food contains) so that it takes longer for the bacteria to spoil the food.

3 0
3 years ago
Read 2 more answers
The nation of Tazia exports agricultural products and in turn imports products that it does not produce such as computers and el
torisob [31]

Answer:

mercantilism

Explanation:

It advocates trade policies that protect domestic industries.it helps to reduce trade deficit and create surplus.

6 0
4 years ago
You own a portfolio equally invested in a risk-free asset and two stocks (If one of the stocks has a beta of 0.66 and the total
Alja [10]

Answer:

The beta of the other stock or stock B is 2.34

Explanation:

The beta of the portfolio is the weighted average of the individual stock betas that form up the portfolio. To calculate the beta for the portfolio, we use the following formula,

Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N

Where,

  • w represents the weight of each stock in the portfolio

As the portfolio is equally as risky as the market, the portfolio beta is assumed to be the same as that of the market and the beta is 1.

The beta is the measure of systematic risk and a risk free asset does not have risk and has a beta of 0.

To calculate the Beta of stock B in the portfolio, we simply put the available values in the formula for the portfolio beta,

1 = 1/3 * 0 + 1/3 * 0.66 + 1/3 * Beta of B

1 = 0 + 0.22 + 1/3 * Beta of B

1 - 0.22 = 1/3 * Beta of B

0.78 * 3 = 1 * Beta of B

2.34 = Beta of B

Thus, the beta of the other stock or stock B is 2.34

4 0
3 years ago
What two project dimensions are components of project performance?
Allisa [31]
<span>The answer is "Scope and quality" are two project dimensions which are components of project performance.

Scope refers to the sum of products, services, and results which are provided as a project and if we define this more simply, it is the size of a project or task. Quality is defined as how well the segments or components satisfy the project requirements or necessities.</span>
5 0
4 years ago
Read 2 more answers
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