How can a company expand itself out of existence, and how can this be avoided as a financial manager?

Q: Why is it necessary for entrepreneurs to learn about financial management principles?

A: This question explains about financial management principles

Q: A process that create a financial position that offsets the risk of an ongoing business process is…

A: Transfer of risk: Transfer of risk is one the strategy for risk management. This involves transfer…

Q: how will a change from cash basis accounting to accural basis accounting positively and negatively…

A: Books of accounts can be maintained either using the cash basis accounting or using the accrual…

Q: Can a company be profitable but not liquid? Explain.

A: Liquidity: It can be defined as the ease or quickness with which the short term assets of a company…

Q: Which of the following is not an external user of a business’s financial information? a. Taxing…

A: Financial information: The financial information of the company is used by many internal &…

Q: Why is Financial Status very essential for Businesses?

A: The Financial position definition of an organization's monetary prosperity status is significant for…

Q: w will accounting affect the stability of a business?”

A: Step 1 Accounting is important in running a company because it enables entity  to monitor revenue…

Q: How could overconfidence affect the financial manager of the firm and the firm’s shareholders?

A: The company have the option to issue its equity shares to the public for raising capital or…

Q: The value created by a business is created by its assets. True or False?

A: Assets are used to generate revenue. So when the revenue generated by the use of assets is greater…

Q: Which of the following is not an external user of a business’s financial information? Taxing…

A: The financial information of the company is used by many internal & external users for getting…

Q: Before making any major business decisions, why is it important to understand the impact of the…

A: Finance plays an important role when making any crucial decisions for the company. Important…

Q: Why is it necessary to have accounting standards? O A. so managers in the company can control the…

A: Accounting standards are necessary because of the following reasons:- The guidelines for treatment…

Q: The agency problem is A. a result of the separation between management and owners of the firm. not…

A: 3. Agency problem refers to the conflict between management and shareholders. As per this theory,…

Q: Importance of gatekeeper in company and financial?

A: Gatekeeper     The set of institutions, as well as actors, help to provide investors with the time…

Q: How can a small-business owner or corporate manager use financial leverage to improve the firm’s…

A: A business decides its capital structure in a way that gives less cost of capital.

Q: What are the three important questions that are usually considered by a financial manager of a…

A: Finance brings a business to life. Finance is important for every part of a firm's operations.…

Q: What is an externality, and why do financial accounting practices typically ignore externalities?

A: Externality is the benefit or the cost caused through the producer that is not incurred financially…

Q: What is finance?  How does it relate to accounting?   What is the objective(s) of the financial…

A: Time value of money Time value of money The main concept of finance is related to the time value of…

Q: Which of the following factors does not increase the importance of obtaining an understanding of a…

A: Business:- It is the form of activities which are conducted for the motive of earning profit.…

Q: For example, how does understanding profit and loss impact your perspective on operating a company?

A: Knowledge of profit and loss while operating a company is critical to the success of the enterprise.

Q: What are the ethical and legal implications of using accounting practices such as the book-and-hold…

A: Corporate earnings are the profits of a corporation after all expenditures have been paid. Earnings…

Q: Explain how a company can be “profit rich, yet cash poor.”

A: Corporation: A corporation is a form of business entity that is incorporated through the state…

Q: Why do you think providers of finance are interested in a company's accounting information?

A: Finance means a money management system like Borrowing money, investing money, expenses money,…

Q: How does the accrual basis of accounting provide different results when compared with the cash…

A: Cash Basis of accounting- Under cash basis, accounting entries are recorded as and when there are…

Q: Why must a company look at current financial records before making changes to reach new financial…

A: Financial records are the summarized transaction of a company. Financial records can be categorized…

Q: Which financial statement provides information on the liquidity position of a firm? Which one…

A: Balance Sheet:   It is a financial statement prepared by an organization at the end of the trading…

Q: What may be stated about a business whose equity is negative? How did such a scenario arise?

A: Investors use shareholders' equity, which is shown on a company's balance sheet, to assess a…

Q: What factors reduce the effectiveness of companies business plan

A: A business plan is a written document that explains all the things about business objectives and how…

Q: Why is financial management so important for small and larger businesses?

A: Financial Management: Financial management means the planning and organization of the financial…

Q: Why is financial information very important in business?

A: The importance of financial information an organization is given below as, Financial Information…

Q: As a corporate financial manager, what steps could you take to protect your company from a liquidity…

A: As a corporate financial manager, what steps could you take to protect your company from a…

Q: How could the presentation  of financial information  pose an ethical dilemma to a business…

A: A professional in public has a responsibility to legitimate his clients. The ethical codes do not…

Q: ng an important business activity? How does it affect th

A: Step 1   The purpose of financial planning is to determine how the company will be able to meet its…

Q: Which of the following are true statements on the principal-agent problem between corporate managers…

A: The principal-agent problem occurs when there are conflicts of interest between the principal and…

Q: Which of the following company kinds need financial information in order to function efficiently

A: The  Answer

Q: Which one of the following is not among the conditions that will qualify a situation, particular…

A: Accountable Event: The events that can be measurable in monetary terms in order to record them in…

Q: eXtensible Business Reporting Language

A: XBRL (extensible Business reportage Language) XBRL (extensible Business reportage Language) may be…

Q: financial information alone be insufficient for the ongoing informational needs of operat

A: Financial information is the data conveyed by the financial statements regarding the financial…

Q: A well-run company should align the management’s interest and with the owner’s interests. What are…

A: An organization with a good corporate governance has the interest of the management and the…

Q: Why is the accounting cycle critical to a business's success? (examples of why certain actions are…

A: The answer :

Q: What  are  the  main types  of  decisions  made  by  the  financial  managers  of  a company?

A: FINANCIAL manager  are managers  responsible for important decisions in the company and responsible…