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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.

You might be interested in
A commercial for the drink SunnyD explains how nutritious it is in comparison to other, more "sugary" drinks. While children und
Papessa [141]

Answer:

A commercial for the drink SunnyD explains how nutritious it is in comparison to other, more "sugary" drinks. While children under 12 are the most likely consumers of SunnyD, the commercial is aimed at mothers. These mothers represent SunnyD's target market.

Explanation:

Marketing is a way in which the producer can provide information about it's goods and service to the customers. The marketing channels can either be direct or indirect depending on which strategy works best for the company. The major reason for marketing is to provide more information about the product and services to cover a larger audience. There is always potential in marketing to convert an audience to a loyal customers depending on the effectiveness of the marketing strategy. More customers usually translates to an increase in sales, and ultimately to an increase in profits. Increased profits is a reflection on business success since most companies get into competitive business to make profits. An example of marketing strategy that is often is used is target marketing.

Target marketing is a type of communication with your potential customers that involves providing more information to a select group of people in the market. This is done by tailoring the message in such a way to ensure that it is directed towards that particular group of people. In the question above, the commercial is made in a certain way to target mothers and possibly convert them to loyal customers.

6 0
3 years ago
A company uses 30% common stock and 70% long-term debt to finance its operations. An increase in which one of the following will
wariber [46]

Answer:

a. Number of bonds outstanding

Explanation:

In the case when  the firm wants to issue  the new bonds but keeping the equity portion constant so the debt weight should increased from 70% to the higher weightage

So as per the given situation, the option a is correct as it also increased the number of outsanding bonds

Therefore the same is to be considered

Hence, the other options seems wrong

4 0
3 years ago
On December 31, Treats Catering Inc.'s trial balance shows a $1,000 balance in the Supplies account. However, a physical count o
Bogdan [553]

Answer:

Debit  Supplies expense account   $650

Credit supplies account                   $650

Explanation:

When supplies are purchased but yet to be used, the entries required are

Debit supplies account

Credit cash/accounts payable

When supplies are used up, the entries required are

Debit  Supplies expense account

Credit supplies account

As such where On December 31, Treats Catering Inc.'s trial balance shows a $1,000 balance in the Supplies account. However, a physical count of the supplies determined that only $350 of supplies actually remain in the supply cabinet, the supplies used up

= $1,000 - $350

= $650

adjusting entries required

Debit  Supplies expense account   $650

Credit supplies account                   $650

Being entries to recognized supplies used up.

8 0
3 years ago
If the company's return on assets is 13% and the industry average is 10%, the company's return on assets ratio is _____ the indu
Nady [450]

Answer: better than

Explanation:

Return on assets refers to a profitability ratio which shows the amount of profit that a company will make from its assets. The return on assets is calculated by dividing the net income of the business by the total assets.

Since a company's return on assets is 13% and the industry average is 10%, then we can infer that the company's return on assets ratio is better than the industry average.

3 0
2 years ago
Steven is going to purchase two stocks to form the initial holdings in his portfolio. Iron stock has an expected return of 25 pe
guapka [62]

Answer:

20.8%

Explanation:

The computation of the expected return of the combined new portfolio is shown below:

= (Expected return of the Iron stock × weightage of iron stock) + (expected return of the copper stock × weightage of copper stock)

= (25% × 30%) + (19% × 70%)

= 7.5% + 13.3%

= 20.8%

The weighatge of current portfolio is come from

= 100% - 30%

= 70%

8 0
3 years ago
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