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kow [346]
3 years ago
13

What is (are) the main problems in using a balance sheet to provide an accurate assessment of the value of a company's equity?

Business
1 answer:
frez [133]3 years ago
3 0

Answer:

A) Valuable assets such as the company's reputation, the quality of its work force, and the strength of its management are not captured on the balance sheet.

Explanation:

As we know that the balance sheet records the assets, liabilities and the equity of the company. Now the main problem with the balance sheet is that the valuable assets such as reputation of the company, work force quality, management strength would not captured here as it only records the monetary transactions.

Therefore the correct option is a.

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On December 15, 2013, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the i
Dahasolnce [82]

Answer:

a. Realized gross profit of $100,000.

Explanation:

In 2013, Rigsby Sales Co would realize:

Gross profit percentage = ($4,500,000 - $3,600,000) /4,500,000

Gross profit percentage = 0.20

Gross profit percentage = 20%

Gross profit to be realized is

Gross profit = Installment received * Percentage of gross profit

Gross profit = $500,000*20%

Gross profit = $100,000

7 0
3 years ago
An investor currently holds stock in Giggle Corporation and is considering buying stock in either Macrosoft Corporation or Facep
Ivenika [448]

Answer:

b

Explanation:

Portfolio diversification is the process of holding different asset and security classes in order to minimise the non systemic risk of the portfolio

Correlation is a statistical measure used to measure the relationship that exists between two variables.

1. Positive correlation : it mean that the two variables move in the same direction. If one variable increases, the other variable also increases. It increases the risk of the portfolio

For example, there should be a positive correlation between quantity supplied and price

When there is a positive correlation, the graph of the variables is upward sloping

2. Negative correlation :  it mean that the two variables move in different direction. If one variable increases, the other variable decreases. It decreases the risk of the portfolio

For example, there should be a negative correlation between quantity demanded and price

When there is a negative correlation, the graph of the variables is downward sloping

3. Zero correlation : there is no relationship between the variables. It decreases the risk of the portfolio

3 0
3 years ago
The forest resource of nepal is degading day by day .write the reasons​
ASHA 777 [7]

Answer:

In general, main causes of deforestation are agricultural production, need of firewood, forage for livestock as well as local unemployment and lack of management from the government.

7 0
3 years ago
Read 2 more answers
Data gathered from the national youth gang survey indicates that less than _____ percent of gang members are female.
ANEK [815]
<span>Data gathered from the national youth gang survey indicates that less than less 10% percent of gang members are female.
Studies showed that females tendency for aggressive behavior (a character that's really needed to become a gang member) is far less compared to their male counterparts. </span>
4 0
3 years ago
In response to threats from such companies as Amazon, established manufacturers and retailers became "brick-and-click" oriented
docker41 [41]

Answer:

Re-intermediation

Explanation:

Re-intermediation is the method applied by most businesses in using the internet to bring together new customers for a business. The advent of technology can afford business owners the possibility of eliminating physical intermediaries in a business. For example, house agents help people who are seeking for new places to live in, find houses easily. Through the internet, however, landlords can directly advertise their vacant houses, thus eliminating the agent relationship which would have served as an intermediary.

So, when established manufacturers by-pass Amazon (which is an intermediary between buyers and sellers) by adding online services to their existing offerings, they have done a re-intermediation.

6 0
3 years ago
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