All categories

3 years ago

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

What is the first step in effective time management

GREYUIT [131]

Answer:

The answer is Planning ahead.

Did some research :)

Planning your day ahead is the first and most crucial step towards effective time management. Because each hour you spend planning saves you 10 hours of doing. So, instead of jumping into your workday with no clear vision, devote some time to time management: think ahead of the activities you need to engage in.

3 0

4 years ago

Prepare adjusting entries for the following transactions. (Credit account titles are automatically indented when the amount is e

-Dominant- [34]

Answer:

Please see the adjusting entries below.

Explanation:

1. Depreciation on equipment

Debit Depreciation expense $1,340

Credit Accumulated depreciation $1,340

(To record depreciation expense for the period)

2. Interest on loans

Debit Interest expense $275

Credit Interest payable $275

(To record interest on loans)

3. Purchase of office supplies

Debit Office supplies $550

Credit Cash $550

(To record purchase of office supplies)

4. Prepaid rent

Debit Amortization expense $700

Credit Prepayment $700

(To record expired prepayment)

5. Accrued salaries

Debit Salaries expense $900

Credit Accrued salary $900

(To record accrued salaries)

7 0

4 years ago

Time Remaining 1 minute 56 seconds00:01:56 Item 1Item 1 Time Remaining 1 minute 56 seconds00:01:56 You Save Bank has a unique ac

Amanda [17]

Answer:

Future value = 16007.81437

Explanation:

we have to compound all the rates for the time period together as the 7,750 as exposed to this rate and their interest generated in one period are taking into consideration for the subsequent period interest calculations.

$7,750 (1.06)^3(1.066)^2(1.073)^6 = FV$

We multiply them and get the future value factor:

$7,750 \times 2.065524435 = FV$

we now can solve for future value:

Future value = 16007.81437

6 0

3 years ago

On January 1, 20X9 Pathlon Company acquired 30 percent of the common stock of Sopteron Corporation, at underlying book value. Fo

Ksenya-84 [330]

Answer:

increase in investment = 16,500

Explanation:

Given data:

net income $55 000

Gain $40,000

PATHLON SHARE IN SOPTERON 30%

according to Wquity method, the increase in investment can be determined as following

increase in investment = share of net income - dividend

putting all value to get increase in investment value

increase in investment $= 55000\times 30% - 0$

$= 55000\times 0.30$

= 16,500

8 0

3 years ago

Suppose that commodity prices across the economy begin to fall and consumers and firms begin to expect a lower rate of future in

butalik [34]

Answer:

B) The SRAS curve will shift to the right, and the short‐run Phillips curve will shift downward.

Explanation:

When the price of key inputs decreases, then the short-run aggregate supply (SRAS) curve shifts to the right, generally resulting in higher production levels (higher supply) due to lower production costs. On the other hand, when the price of key inputs increases, then the SRAS curve shifts to the left.

When inflation expectations decrease or SRAS curve shifts to the right, the short-run Phillips curve shifts to the left.

8 0

4 years ago