Answer:
C. To enforce property rights
Explanation:
Government intervention in market can be non materistically via regulation , materistically via taxes & subsidy.
Although the second materislistic way of tax, subsidy comes under the perview of 'Government Budget' .
Government budget is anual financial statement showing economy's expected revenue & expenditure .
Economic growth & stability by reallocation of resources , reducing income inequalities - reflect 'efficiency' & 'equity' as valid reasons .
Foreign protection is also not invalid depending upon the initial budding stage of a developing economy & its global stand. Eg - India 1950 to 1990 .
However all these are progressive legitimate reason for govt. Intervention .
But , enforcing property rights is a feature of 'socialistic (communistic) economy - which has its own demerits like loss of consumers soveireignity , lack of postive competitive efficiency , govt overburden.
Answer:
d) EPS cannot be calculated if a company has no preferred stock.
Explanation:
The above statement is untrue about E.P.S because the reason why 'Preferred dividend' (which is dividend on preference shares) is subtracted from Net Income, before being divided by the 'Average Number of Common Shares Outstanding' is for comparability.
Since the denominator is based on 'common shares' or 'ordinary shares', it makes sense not to include the part of income that has fallen to preferred shares.
As a matter of fact there are a lot of companies that do not have preferred stock and still report Earnings Per Share on their financial statements.
Finally, still on comparability; E.P.S helps to compare the performance of big companies that have preferred stock with small companies that do not have. Hence EPS can be calculated even when there is no preferred stock.
Explain why the cash flow statement prepared using the indirect method does not explicitly report cash outflows during the period of purchases and salaries. and do not report spills.
In most cases, cash flow and net income statements differ due to the time lag between recorded sales and actual payments. The situation is controlled when the billing customer pays cash in the next period.
The main advantage of the indirect cash flow method is that it provides a net income and cash flow adjustment. The indirect method also helps financial statement users to better understand the various relationships between financial statements and is an easy way to prepare cash flow statements.
Which of the following statements is correct when using the indirect method to prepare the cash flow statement? Income from the sale of equipment is added to the net income of the operations section. Losses on land sales are added to the operating section's net income.
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Answer: I found the example chart and the correct answer is " $ 100".
Explanation: With the lower interest rates in this example, Businesses invested an additional <u>$100</u> billion in new productive projects such as nano-engineering and advanced internet equipment and training.
