How do economies of scale and lumpy assets affect financialforecasting?

Q: What is alternative cash flow measures?

A: Cash flow refers to the amount of cash that moves in and out of the business because of its…

Q: What is Ration Analysis in Financial Analysis?

A: Financial analysis is done for financial statements such as balance sheet for the period ended,…

Q: What type of capital is accounts receivable? Group of answer choices Human. Intangible Physical.…

A: Accounts receivables are the current assets of an entity. These can be converted into cash within a…

Q: Which is more important from a finance perspective-net income or operating cash flow? What is the…

A: Net income is calculated in the income statement whereas and operating cash flows are calculated in…

Q: Cashflow vs. net income: Which strategy is more appropriate?

A: instruction: The direct and indirect routes to a cash flow statement are both found there.

Q: How is can CAPM, Sharpe ratio, Treynor measures and Jensen’s Alpha be used to maintain positive…

A: The performance of portfolio or investment should not evaluated only using the return of portfolio…

Q: Why are financial intermediares so important to an economy?

A: Definition : In simple words, financial intermediaries refers to the individuals and entities that,…

Q: do liquid assets frequently have lower rates of return than fixed assets?

A: Liquid assets are the cash or cash equivalents which can be drained out frequently whereas fixed…

Q: What are financial intermediaries, and what economic functions do theyperform?

A: Financial intermediaries connect the borrowers and lenders in the financial market. The financial…

Q: Explain the Principle of Investing in Financial Assets?

A: Securities are the financial assets that are traded in the financial or secondary or securities…

Q: What is the Principle of Investing in Financial Assets?

A: A financial asset is a liquid asset that gets its value from an authoritative right or guarantee to…

Q: What is net cash flow?

A: Answer: Net cash flow is nothing but the difference between a company’s total cash inflows and total…

Q: What's the connection between financial intermediaries and securitization? When securitization moves…

A: This question explains about the connection between financial intermediaries and securitization

Q: Describe the concept of present-worth analysis based on cash flow equivalence?

A: It is the equivalence analysis method under which cash flows of projects are being discounted to a…

Q: What is financial analysis?

A: The question is based on the concept of financial decision making. Financial analysis are the set of…

Q: What are assets in finance?

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: Distinguish between money markets and capital markets.

A: In a financial market, there are two types such as the Money market and Capital market. In the…

Q: When is debt to asset ratio important when raising money

A: Debt to asset ratio is one of the important ratios that we use in finance. This is essentially a…

Q: What is meant by asset transformation and how is it the basis for differentiating between indirect…

A: Finance transformation can be defined as a business-wide combination of process, system, and culture…

Q: What is the significance of capital accounts?

A: Capital Account: An account which records the trading of foreign assets and liabilities during the…

Q: What does the rate of return on total assets measure, and how is it calculated?

A:

Q: What problem might arise when comparing firms’ fixed assetsturnover ratios?

A: Fixed assets turnover ratio is a ratio that is calculated by dividing the company's net sales by net…

Q: Explains the effect of debt on profit margin and return on assets (ROA).

A: Profit margin is net income as a percentage of sales and Return on assets is Net income as a…

Q: What is the purpose of cash flow analysis?

A: Cash flow Statement: It is prepared by the companies. It is a tool in the hands of users of…

Q: what is the return asset that is used in financial statement analysis?

A: Here in this case we need to understand the meaning of return on asset ratio of financial statement…

Q: What are the two foundations of financialmanagement?

A: Financial management entails the planning, organization, direction, and control of the enterprise's…

Q: What is financial asset market?

A: Financial assets generally include bonds, stocks, mutual funds, cash, deposits with bank etc. These…

Q: Is the cash conversion cycle useful and important in financial analysis? Explain

A: The working capital is a short term fund, which is used to meet day to day operational costs of a…

Q: What is capital assets?

A: Capital asset means property of any kind like land, machinery, building, computer, vehicles,…

Q: What is financial intermediary?

A: A financial system comprises of financial intermediaries to intermediate and facilitate the…

Q: What are some limitations of financial performance measures?

A:

Q: How do the types of assets used affect a firm’s capital structure?

A: There are 2 types of assets, fixed assets and current assets. Fixed assets have life for long period…

Q: asset turnover ratio?

A: Asset turnover ratio = Sales/((Total assets at the beginning of the year + Total assets at the end…

Q: How does measure liquidity?

A: The transactions of the company will be analyzed by the management, and it will be recorded in…

Q: Distinguish between hard and soft capital rationing

A: Capital rationing is allocating a given amount among the most profitable projects which can maximize…

Q: Financial assets in the economy include all but which one of the following?

A: A financial asset is a liquid asset whose value is derived on a legal claim or ownership interest.…

Q: What is the difference between the net aggregate cash inflow and the net aggregate incomes?

A: The net cash flow of an association speaks to the entirety over some undefined time frame of the…

Q: Explain the term Money Management?

A: Answer: Money in the form of bank notes or coins can be described as a medium of exchange.

Q: Why does an increase in the ratio of current assets to total assets decrease both profits and risk…

A: Current assets and current liabilities are utilized to decide the liquidity of an organization. At…

Q: How capital expenditure(investment) analysis helps in evaluating the inflows and outflows of cash?

A: Capital expenditure is a sort of investment in the business either by making a new product line or…

Q: Which is more important from a finance perspective - net income or operating cash flow? Why? What is…

A:

Q: What do the Asset management ratios measure?

A: Asset management (turn over) ratios compare an organization's assets with its turnover. Asset…

Q: How is payback calculated with unequal net cash inflows?

A: