4. Assume that a manufacturing company’s annual income statement included a large gain from the sale ofinvestment securities. What factors would you consider in determining whether or not this gain should beincluded in an assessment of the company’s permanent earnings?

Q: From a practical point of view, according to financial compliance, dividends must be: a)…

A: Dividend= profits distributed to the shareholders

Q: 31)Under the DuPont system, the return on assets is equal to a. the product of the gross…

A: The DuPont analysis is a calculation that uses the net profit margin and the asset turnover to…

Q: All are financial measures, except: A. Market share B. Revenue growth C. Earnings per share D.…

A: Solution: All are financial measures, except "Reduction of past due accounts".

Q: fers to the firm’s decision on what to do with its

A: Step 1   Companies use profit management to adjust profit volatility and present a fixed profit…

Q: The minimum rate of return a firm must earn on its assets to maintain the current value of its…

A: The choice of financing makes the cost of capital a crucial variable for every company, as it will…

Q: evaluate the impact of tax rate changes on a company’s fi nancial statements and ratios;

A: Changes to the income tax rate can significantly impact a company’s financial statements and the…

Q: The ability of a company to meet its long-term obligations is termed: A) Profitability B) Solvency…

A: As we basically know that ,there are different types of companies are formed, some of them are ,…

Q: How would you describe a change that a company makes from the equity method to the fair-value method…

A: Definition:   Equity method: Equity method is the method used for accounting equity investments…

Q: The most important factor to consider when determining the dividends to be declared is *…

A: Dividend is a part of Net profit earned by the entity & distributed among the equity…

Q: An unrealized holding gain or loss on a company’s equity investment at fair value through other…

A: Solution: Unrealized holding gain or loss on a company’s equity investment is just the virtual…

Q: The relative proportion of debt, equity, and other securities that a firm has outstanding constitute…

A: Capital structure refers to the amount of money invested in a busines. this amount of money can be…

Q: The cost of equity is ________.   a.equal to the amount of asset turnover b.the interest associated…

A: Cost of an equity is referred to as the return on the firm, which used to make the payment to their…

Q: Financial analysis considers the profitability, liabilities and other financial capacities of a…

A: Financial analysis of a company certainly looks into the profitability, debt levels and other key…

Q: When is the forecasted growth rate in residual operating income the same as the forecasted growth…

A: The income generated in excess of the minimum rate of return refers to the residual income. The…

Q: When analyzing a company's financial report, what are the most likely indicators that a company is…

A: A tax is a financial charge imposed by government. It is a source of income for the governments to…

Q: Analyze the following statement with a suitable example:  “The current cost adjustment helps to…

A: Inflation seems to be the rate at which prices rise over a specific period of time. Inflation is…

Q: a. What is the cost of equity of each companies? b. What is the after tax cost of debt of each…

A: The Cost of equity: The required rate of returns that shareholders expect from holding a company's…

Q: Which of the following would an analyst most likely be able to determine from acommon-size analysis…

A: In common size statements individual figures are converted into percentages to some common base.…

Q: what do you think is the significance of Earnings Per Share (EPS) especially in measuring the…

A: Earnings per share or EPS is an important financial measure, which indicates the profitability of a…

Q: True or False? Retained Earnings represents the amount that stockholders have invested in the…

A: Introduction: Retained Earnings: Ending retained Earnings value to be shown in Balance sheet.

Q: The financial community in the United States has become increasingly concerned with the quality of…

A:

Q: When the economic method is used, the investor will recognize the investment income when: Select…

A:

Q: Explain the effect on the company's financial statements if a company switches from the historical…

A: A historical method is the accounting principle method in which the asset is recorded at the…

Q: Which of the following statements is likely to be true, for a company making profits? Select one:…

A: All the transactions of the company that are happened during the year will be recorded first in the…

Q: he level of financial risk to which a firm is exposed is dependent on the firm's: (a) tax rate (b)…

A: Financial risk can be defined as the risk of availing of finance and not being able to return it. It…

Q: For available-for-sale equity securities, receipt of a cash dividend would be reported as a. a…

A: For available-for-sale equity securities, receipt of a cash dividend would be reported as Dividend…

Q: How can the retained earnings indicate the number of assets that the company has financed?

A: Retained Earnings: It is the amount which is earned by the company as a profit from business…

Q: Which of the following results in a decrease in the investment account when applying the equity…

A: The equity method is generally applied in case of investment in associate/ joint venture

Q: Assume an income statement with the following classifications: a. Revenues b. Cost of goods sold c.…

A: Step 1 An income statement is a financial statement that depicts profitability of business over a…

Q: Neumann Company computed earnings per share as ­follows. Net incomeCommon shares outstanding at…

A:

Q: Is the tax expense of a firm in its financial statements same as the company tax rate times of a…

A: Tax expense is the total of all the taxes that a company is responsible to pay to the authorities.…

Q: What are the benefits of comparing a firm’s current financial information withinformation for…

A: It is important to compare the company’s past performance with the current one to improve & make…