2. A basic presumption of the net working pay (NOI) way to deal with valuation is: a. that obligation and value levels stay unaltered. b. that profits increment at a steady rate. c. that ko stays steady paying little heed to changes in influence. d. that interest cost and duties are remembered for the estimati
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2. A basic presumption of the net working pay (NOI) way to deal with valuation is:
a. that obligation and value levels stay unaltered.
b. that profits increment at a steady rate.
c. that ko stays steady paying little heed to changes in influence.
d. that interest cost and duties are remembered for the estimation.
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- T o p i c : F o r e c a s t i n g T e c h n i q u e s Why does the presence of fixed costs cause the percent-of-sales method of pro forma income statement preparation to fail? What is a better method? Describe the judgmental approach for simplified preparation of the pro forma balance sheet. T o p i c : F i n a n c i n g O p e r a t i o n s a n d E x p a n s i o n W h a t a r e t h e n e t p r o c e e d s f r o m t h e s a l e o f a b o n d ? W h a t a r e f l o t a t i o n c o s t s , a n d h o w d o t h e y a f f e c t a b o n d ’ s n e t p r o c e e d s ? W h a t p r e m i s e a b o u t s h a r e v a l u e u n d e r l i e s t h e c o n s t a n t - g r o w t h v a l u a t i o n ( G o r d o n g r o w t h ) m o d e l t h a t i s u s e d t o m e a s u r e t h e c o s t o f c o m m o n s t o c k e q u i t y , r s ? H o w d o t h e c o n s t a n t - g r o w t…Following IFRS, which statement is false? Group of answer choices If the revaluation initially decreases the long-term operating asset's carrying value, the firm reports the difference between the carrying value and fair value as an unrealized loss on the income statement. If the long-term operating asset's fair value increases in subsequent accounting periods, after an initial write-down, the firm reports the unrealized gain in the revaluation surplus account. The revaluation surplus account is reported as other comprehensive income on the statement of comprehensive income. If the long-term operating asset's fair value increases in subsequent accounting periods, after an initial write-down, the firm reports the unrealized gain on the income statement, but only to the extent of previously recognized losses.Following IFRS, which statement is false? Group of answer choices The revaluation surplus account is a specific account reported as an unrealized gain in the statement of comprehensive income. If a long-term operating asset's fair value decreases in subsequent accounting periods, after an earlier write-up, the firm reduces the revaluation surplus if it exists. If the revaluation initially increases the long-term operating asset's carrying value, the firm records the difference between the carrying value and the fair value (the unrealized gain) in the revaluation surplus account. The revaluation surplus account is a specific account reported in other comprehensive income (OCI) in the statement of comprehensive income.
- Which of the following criticisms does NOT apply to historical cost financial statements during a period of rising prices? A They are difficult to verify because transactions could have happened many years ago. They are difficult to verify because transactions could have happened B They contain mixed values; some items are at current values and some are at out of date values . C They understate assets and overstate profit. They overstate gearing in the statement of financial positionRelative valuation has several disadvantages. Which of the following is NOT? a. There is the potential to provide inconsistent estimates arising from using different price ratios. b.Relative valuation is affected by the market mood such as when the comps is overvalued, the resulting valuation of the object will be a lower estimate. c. When applying relative valuation, the analyst may remove nonrecurrring income and loss items such as loss from sale of a cash-generating unit; this will improve the valuation process at the expense of time required.d.When biased stock brokers prepare relative valuation reports, it is likely that they will choose a price ratio that will encourage investors to buy stocks.Which of the following is a disadvantage of the average rate of return method? a. fails to consider the time value of money b. includes the amount of income earned over the entire life of the proposal c. emphasizes accounting income d. difficult to use
- Please provide some explanation for the below question: 1. When applying lower of cost or market, market value A. is defined as the selling price B. should not exceed the net realizable value C. should not exceed the net realizable value less an allowance for a normal profit margin D. should not exceed the net realizable value plus an allowance for a normal profit marginFollowing IFRS, which statement is false? Group of answer choices The revaluation surplus account is a specific account reported as an unrealized gain in the statement of comprehensive income. If the revaluation initially increases the long-term operating asset's carrying value, the firm records the difference between the carrying value and the fair value (the unrealized gain) in the revaluation surplus account. The revaluation surplus account is a specific account reported in other comprehensive income (OCI) in the statement of comprehensive income. If a long-term operating asset's fair value decreases in subsequent accounting periods, after an earlier write-up, the firm reduces the revaluation surplus if it exists.Why is the acid test ratio a more rigorous test of short-term solvency than the current ratio? A. The quick ratio eliminates prepaid expenses for the denominator.B. The quick ratio eliminates prepaid expenses for the numerator.C. The quick ratio eliminates inventories from the numerator.D. The quick ratio considers only cash and marketable investments as current assets.E. The quick ratio eliminates revenue from the numerator.
- When applying lower of cost or net realizable value under the FIFO, average cost, or specific identification method, market value a.is defined as the selling price. b.should not exceed the net realizable value plus an allowance for a normal profit margin. c.should not exceed the net realizable value less an allowance for a normal profit margin. d.is defined as the net realizable value.Subject 3 A. Proponents of the use of Fair Value Accounting (FVA) argue that the use of fairvalue reflects current market conditions. On the contrary, opponents of the FVAargue that under specific circumstances, such as a financial crisis, mark-to-marketaccounting may lead to considerable volatility in the financial statements andespecially the Income Statement (Laux and Leuz, 2009). Critically discuss themerits and flaws of FVA in relation to cost accounting. Recommended Reference Laux, C., & Leuz, C. (2009). The crisis of fair-value accounting: Making sense ofthe recent debate. Accounting, organizations and society, 34(6-7), 826-834.Proponents of the use of Fair Value Accounting (FVA) argue that the use of fair value reflects current market conditions. On the contrary, opponents of the FVA argue that under specific circumstances, such as a financial crisis, mark to market accounting may lead to considerable volatility in the financial statements and especially the Income Statement (Laux and Leuz, 2009). Critically discuss the merits and flaws of FVA in relation to cost accounting.