Q: List 5 factors that may indicate that a client may not remain a going concern. For each, indicate…
A: Five factors that may indicate that a client may not remain a going concern are as follows: 1.…
Q: The margin of safety can be defined as the amount by which sales can decrease before losses are…
A: Total sales of a company can be divided into Margin of safety sales and break even sales.
Q: what happens when director is being irresponsible in the company?
A: Responsibilities of the director of a company are the following:- 1. Exercise independent judgement…
Q: Profit maximisation will lead to; a. Inequalities among the shareholders b. Corrupt practices…
A: TWo types of maximization are profit maximization and wealth maximization
Q: Under what type of financial risks you would put these risk factors? Economic Distress…
A: A risk is something that can cause a possible loss or damage to an individual or a corporation and…
Q: Suppose a company has a facility located where disastrous weather conditions often occur. Should it…
A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…
Q: Which of the following situations is most likely to pose a problem for companies that use return on…
A: Return on investment is computed as the average return generated dividend by the investment made in…
Q: Which of the following losses can be considered as operational risk losses? a) A counterparty going…
A: Operational risk is defined by the Bank for International Settlements (BIS) as the risk of loss…
Q: Classify each of the following as a problem or a symptom. If it is a symptom, give two examples of a…
A: a.
Q: Risk management is concerned with understanding and managing the risks that an organization faces in…
A: Risk management is concerned with understanding and managing the risk that an organization faces in…
Q: You are appointed as an advisory officer in a company because that company has suffered a huge loss.…
A: The advisory officer is responsible for the identification of areas where improvement can be done…
Q: One of the key risk areas that corporates need to manage is "ethical risks." Do you think that…
A: Ethical risk: It is the negative unexpected impact of unethical actions.
Q: Break-even analysis is of limited use to management because a company cannot survive by just…
A: Break even point is where fixed cost and variable cost are equal to selling costs it gives an…
Q: Describe some of the motives and mistakes made by the financial engineers?
A: Motives of financial engineers are discussed as follows: Financial engineers use quantitative…
Q: If the company concludes that overall asset turnover is poor, how will management identify the…
A: Business entities measure the performance in regards to assets turnover, by computing the asset…
Q: Risk management is concerned with understandi
A: Risk management in finance is an important element for any corporation to become successful.…
Q: What informal remedies are available to firmsin financial distress? In answering this…
A: The informal remedies available to the firms in financial distress are discussed as follows:…
Q: Which of the following statements about GAAP is not true? O a. GAAP impacts how companies report and…
A: GAAP is the set of generally accepted accounting principles, which tell about what are the rules,…
Q: Explain how hazards will help reduce the impact of loss in a company?
A: Loss is referred to as the decrease in net income in an financial terms, which is outside the normal…
Q: How can a business owner identify risk exposure?
A: Introduction: Risk can be characterised in terms of the uncertainty of future consequences resulting…
Q: The margin of safety is the amount that sales can drop before the company incurs a loss True False
A: Margin of safety = Actual sales - Break-even sales
Q: define contingent liability and give an example. How would you management of a company distort a…
A: Solution Concept Contingent liability Contingent liability means the liability which…
Q: Why the corporate social responsibility activities have negative implication on the accounting…
A: The costs paid to do CSR activities are basically expensed from the company money. In the short…
Q: Management accounting reports on the profitability (and therefore the efficiency) of a business,…
A: There are two main branches of accounting. One is financial accounting and other is management…
Q: Contingent situation is a potential negative event that may occur in the future, such as economic…
A: Companies and investors plan for various contingencies through analysis and implementing protective…
Q: Calculate the net profit/loss for Lockdown Enterprise
A:
Q: What informal remedies are available to firmsin financial distress? In answering this…
A: Financial distress in a condition in which a company will not be able to earn income which is…
Q: ow would the principle that directors may be linked to the performance affect the company's…
A: Performance of the company means the company's working, which is analyzed by its working, financial…
Q: Identify the key areas of concern if the company fell on hard times and their creditors forced them…
A: Creditors are the parties or the person to whom company has the liability to pay the money to them…
Q: types of defects of the company using Pareto analysis.
A: The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of the…
Q: A cost center is a responsibility center of a company which incurs losses. incurs costs and…
A: A cost center definitely incurs some cost to the business.
Q: What informal remedies are available to firmsin financial distress? In answering this…
A: An informal restructuring is typically the "lowest drastic" option for a financially troubled…
Q: Which of the following is not likely to be included in thetypical components of management…
A: It is an amount paid by the employer to his employees for the work they do in accordance with…
Q: A company is required to report a liability on its balance sheet when it expects to lose a lawsuit…
A: Solution Principle of conservatism state that record all the possible losses but revenues and assets…
Q: External failure costs include all of the following costs except those related to: a. Lost sales and…
A: Internal failure costs are quality costs incurred as a result of product problems recognized before…
Q: There was a storm in Muscat which caused the walls and ceilings of Mega Mall to fall. The owners of…
A: In the above case, explanation can be given in two situations: Situation 1: The Mega Mall had…
Q: manufacturer of household appliances has potential costs due to the discovery of a defect in one of…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: 1. Cite specific examples of risk avoidance, Reduction, Transfer and Retention? 2. What is the…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: In a manufacturing company, which of the following will affect gross profit? a. A change in the…
A: The gross profit of a manufacturing company is calculated by deducting the cost of goods sold from…
Q: Which of the following should be disclosed as a note to financial. statements as a contingent…
A: A contingent liability is an unexpected liability arising from the past events. This is dependent on…
Q: Why is pro forma earnings reporting coming under scrutiny? How can you mitigate the "bad press"…
A: Pro forma earnings reporting refers to those financial statements that have hypothetical amounts as…
Q: What informal remedies are available to firmsin financial distress? In answering this…
A: Introduction : In simple words, informal remedies refers to the alternatives that are available to a…
Q: What is the positive and negative impact of the credit and collection functions on the other parts…
A: Credit refers to the debt and loan that is provided by the company to others at a certain rate of…
Q: What are organizational costs? What are the reasons for and against capitalizing organizational…
A: The first cost of forming a corporation is referred to as an organisational cost or expense. Legal…
Discuss the possible factors that can contribute to the severe losses in a company
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Solved in 2 steps
- Explain how hazards will help reduce the impact of loss in a company?Explain what "financial distress" means. Let's say that a company is in financial difficulties, and explain how and why it might affect its equity.Answer true or false and explanation to why. Restructuring the liabilities might positively influence the ROE, but will negatively influence the service level of the company
- What are some of the non-financial factors you would consider if you were faced with a decision related to keeping or terminating a business segment? Can you think of a time when you experienced a dropped segment? Were there consequences other than financial that affected the company?List five factors that may indicate that a client may not remain a going concern. For each indicate the degree of subjectivity and judgement that infact it may result in the company going bankruptExplain what is meant by adverse economic consequences of new or changed accounting standards.
- Why would managers misrepresent the financial results oftheir companies?How does a company maintain liquidity and avoid bankruptcy during a pandemicEconomic consequences of accounting standard-setting means: a. standard-setters must give first priority to ensuring that companies do not suffer any adverse effect as a result of a new standard. b. standard-setters must ensure that no new costs are incurred when a new standard is issued. c. the objective of financial reporting should be politically motivated to ensure acceptance by the general public. d. accounting standards can have detrimental impacts on the wealth levels of the providers of financial information.
- It is a circumstance in which the liquidation value of an industry is examined for purposes that are highly controlled by the government and are generally limited, such as mining and oil. Choose the right answer: Failures in Business Divestment End of life for a company Scarce resources are being depleted..Describe how ratio analysis can be used to explain the signs of a troubled business. Provide examples of the ratios used.Suppose a company has a facility located where disastrous weather conditions often occur. Should it report a probable loss from a future disaster as a liability on its balance sheet? Explain.
