Analyze the disadvantages of financial performance measures and the advantages of non

Q: Explain the problems of adverse selection and moral hazard caused by asymmetric information. How can…

A: A financial institution is a corporation or person who acts as another go for different parties in…

Q: Why should the managers make investment decisions on the basis of cashflows rather than profits?

A: Net income: The bottom line of an income statement which is the result of excess earnings from…

Q: Consider the advantages and disadvantages of using the accounting rate of return as an investing…

A: This question explains about  the advantages and disadvantages of using the accounting rate of…

Q: Evaluate the effect of gearing on cost of capital and firm value taking into consideration the…

A: The term “gearing” can be defined as the tool to gauge company’s financial leverage by emphasizing…

Q: How does sustainability-aligned reporting differ from traditional financial reportin

A: The traditional financial Reporting represents the financial position of any organization while…

Q: explain why an analyst attaches great importance to evaluation of the income statement

A: Meaning of Income statement- Income statement is one of the financial statements prepared by…

Q: What is “fair value”? Consider whether it is really helpfulwhen reporting financial results. Give…

A: Fixed assets: These include all the assets that are of tangible nature and have an expected useful…

Q: risk implications of improving net profit margin to increase Return on Equity?

A: Net profit margin is the percentage of net profit to sales revenue

Q: Advantage and disadvantages of ratios in analyzing financial performance

A: Ratio Analysis is the financial analysis technique which is used to analyse the financial condition…

Q: Explain the difference between liquidity, solvency and profitability analysis.

A: Liquidity analysis is the analysis by using ratios to determine the ability of company in repaying…

Q: Which is risk in the context of financial decision making and performance? Does performance…

A: Risk in the perspective of financial decision making and performance differs as the company faces…

Q: Explain factors that encourage high-quality financial reporting.

A: A conceptual framework can be defined as a system of ideas and objectives that lead to the creation…

Q: Value at Risk (VaR) is a statistical measure of maximum loss used by banks and other financial…

A: Value at Risk is a technique used by institutions to analyze the potential risk assessed in the…

Q: Evaluation of the performance of an Investment center should only Include financial measures. True…

A: An investment centre is a business unit in a firm that can utilizes capital to contribute direct to…

Q: Which of the following should not be included as an application of the rate of return concept? rate…

A: As per the guidelines, only one question is allowed to be answered so, I am answering question no.…

Q: Discuss the three major factors that discriminate between successful and unsuccessful new financial…

A: There are mainly two things through which a company generates revenue i.e. by selling products or…

Q: explain how the idea of value creation under stakeholder theory differs from that under positive…

A: Here discuss about the details of the difference between the stakeholders theory with the positive…

Q: How behavorial bias affect investment behavior?

A: Behavioral bias is the belief by the investors that unknowingly affects the investors investment…

Q: What methods could be used in profit planning?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Discuss the importance and differences of liquidity, solvency and profitability.

A: Liquidity is the ability to turn an asset into cash or cash equivalent with ease. Solvency is the…

Q: What is/are the importance of identifying the gaps to make financial projection feasible?

A: A gap analysis is a method for comparing present performance to desired, expected performance. This…

Q: Fair value is a more relevant measure to use in Financial Reporting than Historical Cost. Discuss

A: Introduction: Fair value accounting refers to the practice of valuing your company's liabilities and…

Q: Explain the parameters or situations used to determine if the operating and financial leverages are…

A: Operating leverage is based on the cost structure of the company. It is the extent of fixed and…

Q: What are the fundamental elements of an adequate financial planning process. What are the…

A: Answer: Financial planning is nothing but an on-going mechanism for the advancement of the course…

Q: predict

A: Financial planning is always a challenging task for nay company & the things become even more…

Q: Explain the difference between deterministic and probabilistic financial planning models.

A:

Q: Explain how differential weight to losses and gains effect investment decisions?

A: Prospect Theory assigns differential weight to losses and gains for making investment decisions.

Q: Are the use of non-GAAP financial measures ethical?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: The decision making about profit sharing is Select one from the following options. O long-term…

A: Financial decision-making is the decision about the different sources of funds. The short-term…

Q: In isolation, which of the following is TRUE about a financial ratio? Select one: a. Useful only for…

A: In fundamental financial management, financial ratios play an important role in the analysis of…

Q: when a client notices a discrepancy between annual profits calculated by the accountant versus your…

A: 1. Accountant’s Cash-based Profit: The accounting method in which the revenue is the amount of cash…

Q: Explain the difference between financial risk andbusiness risk.

A: Risk is referred as the chance of loss. An activity which leads to loss is termed as risk. The risk…

Q: How the RISK affects EFFICIENCY (operational or financing) that subsequently affects RETURN (for…

A: Answer: A shareholder is an individuaal or a company who owns sharres in a company. Shareholders are…

Q: What factors are frequently ignored in financial analysis? Why?

A: Qualitative factors are the factors that deal with an intangible as well as inexact information that…

Q: main characteristics of useful financial goals

A: The main aim of setting the financial goals is to achieve meaningful result that positively affect…

Q: Why is the application of fair value principle in measuring the financial position less objective…

A: the application of fair value principle in measuring the financial position is less objective than…

Q: What should businesses consider when it comes to the expense side of the BPM equation?

A: Business process management is a technique which is used to plan, analyze, improve, and automate…

Q: Give an example of a strength and a weakness of the accounting rate of return approach.

A: ARR stands for accounting rate of return, is a formula which computes the desired rate of return in…

Q: Why does the use of debt lower the profit margin and the ROA?

A: Company needs to raise the fund to have the capital which needs for the business for multiple…

Q: ___________ is the possible loss of revenue resulting mainly from a decline in the revenue base.…

A: There are various risks

Q: To evaluate a company’s performance, investors need a benchmark to which they can compare its…

A: Financial ratio is defined as an accounting ratio, which used to choose two main numerical value for…

Q: should we expect the flotation costs for debt to be significantly lower than those for equity

A: Flotation costs are the expenses incurred by a firm when it issues fresh stock. Flotation costs…

Q: Please explain: Managers estimate bad debt expense based on​ which of the following? professional…

A: Accounting principles means those set of standards which is followed while preparing the books of…

Q: wrong about the use of financial statement analysis?

A: There are internal and external stakeholders of a company who are interested in determining the…