1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pshichka [43]
3 years ago
10

Two metrics that are used to measure a company's financial performance are net income and cash flow. Accountants emphasize net i

ncome as calculated in accordance with generally accepted accounting principles. Finance people generally put at least as much weight on cash flows as they do on net income. Question 9 options: True False
Business
1 answer:
lord [1]3 years ago
6 0

Answer:

true

Explanation:

Finance people place greater weight on cash flows that net income.

Net income = total revenue - total cost

Cash flow is the movement of cash and cash equivalents in and out of an organisation.

Even though a company may be generating a positive net income, the positive net income may not be from sustainable sources, so it is for this reason that cash flows are examined.

also, cash flows are less subject to manipulation when compared with net income.

It is for these reasons that finance people place more importance on cash flows

You might be interested in
Pam Erickson Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for l
Brilliant_brown [7]

Answer:

a. $478,450

b.Dr Construction in Process $165,500

Cr  Deferred tax liability  $49,650

Cr   Retained earnings  $115,850

Explanation:

A. Calculation for the amount of net income that would be reported in 2015 for Pam Erickson Construction Company

Using this formula

Net income =(Income before income tax ) Income before income tax-Tax rate

Let plug in the formula

Net income= $683,500 - (683,500 × 30%)

Net income= $683,500 - $205,050

Net income= $478,450

B. Preparation of the Journal entry(ies) that are necessary to adjust the accounting records

For Pam Erickson Construction Company

Dr Construction in Process $165,500

Cr  Deferred tax liability  $49,650

($165,500 × 30%)

Cr   Retained earnings  $115,850

($165,500 × (100%-30%)

5 0
3 years ago
Our company sells flat screen tvs to retailers for $1,000. The total fixed costs for plant operation is $60,000. It costs us $70
Sedbober [7]

Answer:

<h3><em><u>i</u></em><em><u> </u></em><em><u>d</u></em><em><u>o</u></em><em><u>n</u></em><em><u>'</u></em><em><u>t</u></em><em><u> </u></em><em><u>k</u></em><em><u>n</u></em><em><u>o</u></em><em><u>w</u></em><em><u> </u></em><em><u>i</u></em><em><u> </u></em><em><u>h</u></em><em><u>a</u></em><em><u>v</u></em><em><u>e</u></em><em><u> </u></em><em><u>n</u></em><em><u>o</u></em><em><u> </u></em><em><u>a</u></em><em><u>n</u></em><em><u>s</u></em><em><u>w</u></em><em><u>e</u></em><em><u>r</u></em><em><u> </u></em><em><u>t</u></em><em><u>o</u></em></h3>

Explanation:

<em>s</em><em>o</em><em>r</em><em>r</em><em>y</em><em> </em><em>a</em><em>g</em><em>a</em><em>i</em><em>n</em><em> </em><em>i</em><em> </em><em>n</em><em>e</em><em>e</em><em>d</em><em> </em><em>a</em><em>n</em><em>s</em><em>w</em><em>e</em><em>r</em><em> </em><em>t</em><em>o</em><em>o</em><em>,</em><em>a</em><em>n</em><em>y</em><em>o</em><em>n</em><em>e</em>

4 0
2 years ago
he nation of Pecunia had a current account deficit of ​$ billion and a nonreserve financial account surplus of ​$ million in 201
Andrei [34K]

Answer: -$500,000,000

Explanation:

The Balance of payment is an account that shows the difference between the money coming into a country as a result of transactions with other nations and money going out for the same reason.

Given the figures in the question, the Balance of Payments is;

= Current Account balance + Nonreserve financial account balance

= -1,000,000,000 + 500,000,000

= -$500,000,000

4 0
3 years ago
uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost for
OLga [1]

Answer:

$11,026 Favorable

Explanation:

The computation of the  spending variance for plane operating costs in November is shown below:

= Budgeted cost -  Actual cost

= [(84 × $3,160) + (252 × $18) + $593,00] - $318,250

= $329,276 - $318,250

= $11,026 Favorable

5 0
3 years ago
9-10. Armstrong Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/14 and 12/31/15 containe
IceJOKER [234]

Answer:

Consider the following explanation

Explanation:

If these error are nit corrected, the income before taxes be overstated by $ 35,000 .

As, Overstatement of Ending Inventory will affect the gross profit (Increase) by $ 25,000 and then understatement of Depreciation will further increase Net Profit by $ 10,000

5 0
3 years ago
Other questions:
  • Which program should a person research to find information on how to become physically fit?
    14·2 answers
  • Mainstream economic theorizing sees work as a lousy activity that workers tolerate in order to earn income. One way that work is
    13·1 answer
  • The SRAS curve is upward rising because:
    13·1 answer
  • Which of these is the most likely outcome of a financial crisis?
    5·2 answers
  • ZZ Inc. uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assemb
    10·1 answer
  • "An economy is based on three sectorsdashagriculture​, ​manufacturing, and services. For each unit of​ output, agriculture requi
    6·1 answer
  • While working out at the gym you hear a group of individuals making obscene remarks about your body. You feel like you are being
    12·1 answer
  • Can someone help me please
    6·1 answer
  • In the Hausser Food Products case, which type of organizational structure might have prevented the Florida sales team from withh
    9·1 answer
  • Write a proposal on why your business should implement a recycling program. (will give brainliest)
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!