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AysviL [449]
3 years ago
5

Which sentences explain the limitations of financial statements​

Business
1 answer:
rjkz [21]3 years ago
7 0

Answer:

Estimates calculating financial statements are subjective as they involve Management's foresight to arrive to different values.

Explanation:

According to this, subject of fraud is one limitation of financial statements, and this is kind of what it talks about here.

I hope this helps, and as always, I am joyous to assist anyone at any time.

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Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in.
ohaa [14]

Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in the cash flows from investing activities section.

What is depreciation?

Depreciation is an accounting technique that distributes an asset's cost throughout its anticipated useful life. Depreciation is a recurring expense that businesses report on their income statement. Assets degrade with time, losing value.

Which activities are reported on the statement of cash flows?

Transactions must be divided into the three categories of operating, investing, and financing activities that are shown on the statement of cash flows.

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8 0
2 years ago
What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?
Lostsunrise [7]

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

<h3 /><h3>How does expansionary monetary policy affect trade?</h3>
  • Increases in the stock market are a result of expansionary economic policy since it boosts economic activity. Fiscal and monetary channels can be used by policymakers to carry out an expansionary strategy. It is typically used when inflationary pressures are low and the economy is headed towards a recession.
  • When a central bank employs an expansionary monetary policy, it helps to boost the economy. This boosts the availability of money, brings down interest rates, and raises demand. It promotes economic expansion. It reduces the currency's worth, which decreases the exchange rate.
  • The following are the general effects of monetary policy on economic activity, as measured by changes in (real) interest rates. Financial institutions can obtain funds at cheap interest rates when interest rates fall. They are able to lower their lending rates for loans to businesses and households as a result.
  • Expansive monetary policy can be quite successful in the early stages of a financial and economic collapse, reducing uncertainty spikes and tail risks and preventing negative feedback loops (e.g. Mishkin 2009).

What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

To learn more about lineage, refer to:

brainly.com/question/18939014

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7 0
2 years ago
Utility refers to Multiple Choice the benefits or customer value received by users of the product. the fixed costs associated wi
kotykmax [81]

Answer:

A. the benefits or customer value received by users of the product.

Explanation:

Utility refers to the benefits or customer value received by users of the product. This ultimately implies that, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility. These utilities can be classified into four (4) main categories and these are;

1. Time utility: this is associated with the benefit or customer value received by users of a particular product when needed or at the right time.

2. Form utility: it is the satisfaction or benefits a customer receives from the provision of alternatives or production of close substitutes.

3. Possession utility: it involves making goods and services readily available for customers to purchase or use.

4. Place utility: it involves making a good provision of outlets or shops where customers can easily find or come to when purchasing products.

4 0
4 years ago
Most internet reference sites are free to use. t/f
Evgesh-ka [11]

Answer:

It is true the person above is wrong I have proof

Explanation:

5 0
2 years ago
Penn Inc., a manufacturing company, owns 75 percent of the common stock of Sell Inc., an investment company. Sell owns 60 percen
ratelena [41]

Answer:

Option B-Consolidation used for both Sell and Vane.

Explanation:

Both of the companies must be consolidated because the parent company controls both of the company and according to International Financial Reporting Standard, the companies that the parent company directly controls (75% ownership of Sell Inc. and 75% control) or indirectly controls (75%*60%= 45% ownership of Vane Inc. and 60% control of the company) must be consolidated. Here Penn Inc. controls both the subsidairies Sell Incorporation and Vane Incorporation, so they must be consolidated to group accounts.

4 0
3 years ago
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