Answer:
D. They expect these shares to have greater growth opportunities.
Explanation: P/E(price to earning) ratio is a ratio used in the stocks and other marketable securities to determine the price of the shares of a particular Company in relationship with the annual net income of the company per share.
A HIGHER PRICE TO EARNING RATIO INDICATES THAT THE COMPANY INVOLVED IS EFFICIENTLY UTILIZING ITS RESOURCES IN ORDER TO GENERATE PROFIT,IT ALSO SHOWS THAT THEIR IS HIGH DEMAND FOR THE COMPANY'S SHARES BECAUSE INVESTORS TRUST IN THE COMPANY'S ABILITY TO GROW AND MAKE PROFIT.
Answer:
$47,200
Explanation:
For computing the budgeted purchase, first we have to determine the purchase unit which is shown below:
= Sale units + ending inventory units - beginning inventory units
where,
Sale units are 1,300 units
Ending inventory units = 900 units × 30% = 270 units
Beginning inventory units = 1,300 × 30% = 390 units
Now put these units to the above formula
So, the units would equal to
= 1,300 units + 270 units - 390 units
= 1,180 units
Now the budgeted purchase would be
= 1,180 units × $40
= $47,200
1.d.exacerbate all of the problems caused by asymmetric information
2.d.it is concentrating the loan risks
Answer:
d. verify that the debits and credits are in balance.
Explanation:
Option A is wrong because without adjusting entries, there is not necessary to adjust the flow of the financial statement.
Option B is wrong because, if we do not give adjusting entries, a debit and a credit entry will not come, and that cannot disturb the income statement.
Option C is wrong because whether the adjusting entries are posted or not, net income will always go to the statement of owner's equity.
The purpose of adjusting entries is to verify that the debits and credits are in balance. Therefore, <em>option D</em> is the answer.