Answer:
Reliability and validity are concepts used to evaluate the quality of research. They indicate how well a method, technique or test measures something. Reliability is about the consistency of a measure, and validity is about the accuracy of a measure.
Explanation:
Answer: "A calculation of financial ratios and an evaluation of the comparative trends in the firm’s financial position and performance over a certain time period" would be best to include in a financial statement analysis because The calculation of these ratios allow us to analyze in detail the financial and economic situation of the company. In other words, the company's ability to meet its obligations and generate profits.
Analyzing these ratios in a comparative way between 2 periods allows us to see the trend of the ratios and from this we can estimate where the company is heading.
Answer:
a. $103,400
Explanation:
As we know that
Cost of goods sold = Beginning inventory + purchases - ending inventory
And,
Gross profit = Sales revenue - cost of goods sold
Since in the question it is given that
The ending inventory and beginning inventory had been overstated by $11,200 and $6,600 respectively
Since overstatement in the initial inventory raises the cost of the goods sold and decreases by that amount the gross profit & net income
And, overstatement in ending inventory reduced cost of goods sold and raised gross profit & net income by that amount.
So for overstated ending inventory the amount should be deducted and for overstated beginning inventory the condition would be reverse
So, the correct amount is
= incorrect pretax net income + overstatement in beginning inventory - overstatement in ending inventory
= $108,000 + $6,600 - $11,200
= $103,400
Answer:
Preemptive right
Explanation:
The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is called a <u>Preemptive right.</u> A preemptive right grants right to existing shareholders to buy some proportion of new shares at a price lower than market price
Answer:
Diversifiable
Explanation:
Diversifiable risk is risk that is peculiar to a company or industry. It can be eliminated by diversifying portfolio.
Systematic or Market risk is risk that is peculiar to the market and it can't be diversified away.
I hope my answer helps you