Q: Which element of financial performance decreases in economic benefits during the accounting period…
A: Accounting equations are on the basis of the dual aspect concept of accounting. It means that every…
Q: How does retained earnings increase? What are the two ways that retained earnings decreases?
A: Retained earnings is a reserve kept aside from the surplus income earned to use it for re investment…
Q: Which of the following would not result in an increase in both the current ratio and the acid-test…
A: Definition: Current ratio is one type of liquidity ratios, it link between current assets and…
Q: 5 _______are decreases in economic benefits during the accounting period in the form of outflows or…
A: Expenses are decreases in economic benefits during the accounting period in the form of outflows or…
Q: Which of the following is not a source of informal short-term finance? * A. Accrued wages B…
A: Financing is an act or a process of providing funds to the business in order to operate the business…
Q: Increasing a country's risk-free rate could _______ the cost of equity to an MNC in that country;…
A: The theoretical return on a risk-free investment is known as the risk-free rate of return. Over a…
Q: Payment of a divdend will : A. Decrease net income B. Increase net income C. Decrease retained…
A: when companies earn income they share income with shareholders by way of dividend.
Q: Vhile computing the cost of equity using the formula, r = D1 +g, we do not make PO ny adjustment to…
A: Equity is ownership of the company and debt is external to company.
Q: Decrease in current liability [A] increases working capital [B] decreases working capital [C]…
A: Formula for Working capital : Working capital = Current assets - Current liability
Q: A company wishing to increase earnings in the current period may choose to:A . decrease the useful…
A: The amount of profit earned by the company or an individual is known as the earning of the company…
Q: Why do companies accelerate depreciation on their tax return but often use slower depreciation…
A: Companies generally use accelerated depreciation on their tax return, as these methods result in a…
Q: How does retained earnings increase? What are the two ways that retained earnings decrease?
A: Retained earnings get increased if company generates net income.Retained earnings get decrease if…
Q: Why does "Retained Earnings" grow in value while the other two line items appear constant?
A: Retained earnings refers to the aggregate of net profits of business after accounting for the…
Q: How does inflation distort ratio analysis comparisons for one company over time (trend analysis) and…
A: Inflation is the situation in which prices of products rises in the market. Due to inflation value…
Q: 1. Lower interest rates on loans 2. Policy support on financial literacy and new financial services…
A: Answer to the above question is Option (A):Increase in economic growth *When the rate of interest on…
Q: What is the effect of writing off of an uncollectible account to the working capital of a company?…
A: >Working Capital is the excess of Current Assets over Current Liabilities. >Account…
Q: A higher level of national income is bad from a current account point of view Select one : True Or…
A: A higher level of national income is bad from a current account point of view
Q: The stable dollar assumption assumes that: the monetary unit is the functional currency of any…
A: Under the stable dollar assumption, it is assumed that the definition of the dollar will remain…
Q: of the recession phase. (Check all that apply) Choose the characteristics Unemployment begins to…
A: Characteristics of Recession include: Unemployment begins to rise Businesses lower production of…
Q: Earnings will Increase/Decrease
A: A cash flow statement refers to the statement that is helpful in tracking the cash movement in an…
Q: Which of coming up next isn't a money outpouring? a) Increase in Prepaid costs b) Increase…
A: Money outpouring means a situation when money is outpoured or outflown from the business.
Q: Which of the following would NOT improve the current ratio? Borrow short term to finance additional…
A: Introduction:- Current ratio:- It is a short is liquidity ratio. It measures liquidity position of…
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: What are the important key points of income taxes PAS 12, Earning Per Share PAS 33 and Reporting in…
A: International Accounting Standards are the accounting standards which are issued by the…
Q: 6. A multifactorial phenomenon that manifests itself in the growth of the General level of prices…
A: The macroeconomic concepts are considered to be the important factors of the economy wherein the…
Q: A downward adjustment in a firm's payout ratio means that the firm is reinvesting a : proportion of…
A: Retention ratio refers to those portions of net income of the company which is not paid by the…
Q: 1. Subsidy on inputs 2. Higher interest rates on treasury bonds 3. Higher business tax Identify…
A: Subsidy on inputs indirectly lead to fiscal deficit and hence increase inflation.
Q: Q48 Monetary working capital adjustment (MWCA) is computed in order to provide for increase in…
A: Working capital is the difference between the current assets and the current liability. The current…
Q: c. What would the annual interest and earnings after taxes for the conservative and aggressive…
A: Asset Financing: Here the company gets the loan amount by pledging its assets. Information…
Q: Which of the following would not result in an increase in both the current ratio and the acid-test…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: A decrease in economic benefits or decrease in assets or increase in liability resulting in decrease…
A: Expenses are decreases in economic benefits during the accounting period in the form of outflows or…
Q: _are decreases in economic benefits during the accounting period in the form of outflows or…
A: The right answer is option b. Expenses
Q: Which of the following transactions causes an increase in working capital? a. Sale of merchandise…
A: Working capital = Current assets - Current liabilities
Q: It is highly likely that the projected retirement income based on the replacement ratio method may…
A: Replacement Ratio :- Replacement ratio is used to estimate the retirement income. It can be…
Q: Debt-deflation leads to lower income because: O falling prices redistribute income from debtors to…
A: Debt deflation is an economic theory. It occurs when fall in prices leads to increase of debt burden…
Q: 2. How do earnings trends compare in terms of both the direction and stability of income?
A: Earnings are profits earned by the business which is very important for a business to survive.…
Q: Which of the following basic accounting assumptions is threatened by the existence of severe…
A: Correct option is A i.e. Monetary unit assumption Monetary unit assumption is a basic…
Q: Which of the following statement about inflation is incorrect a. A positive inflation rate reduces…
A: Inflation is very important factors in time value of money and have impact on the real rate…
Q: An increase in the current account deficit will place ____ pressure on the home currency value,…
A: The current account deficit is a calculation of a nation's trade in which the value of its imports…
Q: The nominal interest rate is adjusted based on _______ from the real interest rate.
A: Nominal interest rate is that interest rate before taking inflation into account. On the other hand…
Q: The reduction in the value of a currency due to market forces is known as O a. Appreciation O b.…
A: The answer is option (c) The reduction in the value of currency due to market forces is known as…
Q: a. What is the projected value for earnings before interest and taxes? Do not round intermediate…
A: Earning before interest and tax is income before deducting interest and tax. Pre-tax earning is…
Q: A change in the company's income taxes Changing the selling price of a com
A: In business, net income refers to the amount of money left over after all expenses have been paid,…
Q: In which financial statement are the incomes that cause an increase in equity and expenses that…
A: The financial statements of the business include the income statement, balance sheet and cash flow…
Q: 6 ________________are decreases in economic benefits during the accounting period in the form of…
A: Expenses are those expenditures in business which decreases the assets in business also they can…
Q: does the WACC decrease as a com
A: Introduction : In simple words, Weighted average cost of capital or WACC is the sum of the cost of…
Increase in wages
(A) increase inflation
(B) decrease inflation
(C) does not directly affect
Step by step
Solved in 2 steps
- Which of the following is a consequence of inflation a. An increase in economic growth b. An increase in the purchasing power of money c. A decrease in the unemployment rate d. A decrease in the purchasing power of money Please provide the correct answer ###@@@@####@@#$$$$$$$Which of the following statement about inflation is incorrect a. A positive inflation rate reduces purchase power of dollars b. Excess money supply increases inflation c. A positive inflation rate increases the real interest rate d. A positive inflation rate lows the real interest rateA Higher business tax will (Please select the best choice)(A) increase inflation(B) decrease inflation(C) does not directly affect economic growth or cannot be determined
- During a period of inflation, an account balance remains constant. With respect to this account, a purchasing power gain will be recognized if the account is a: a. Monetary liability b. Monetary asset c. Nonmonetary liability d. Nonmonetary assetPeriods in time that experience increasing price levels are known as periods of a. deflation b. recession c. inflation d. depressionWhich TWO of the following are possible effects of rising prices upon financial statements? Understatement of capital employed Overstatement of capital employed Overstatement of profits Understatement of profits
- Which one of the following statements is correct? A- Stock prices are independent of the economic cycle B- Stock prices chane simultaneoustly with the economy C- Stock prices often start to rise before the end of a recession D- Changes in stock prices generally lag changes in the economyQUESTION 1 A general decline in prices also decreases the value of money. True FalseQ48 Monetary working capital adjustment (MWCA) is computed in order to provide for increase in monetary working capital necessitated by: a. Price changes of inputs during the period b. Increase in all interest rates on borrowings c. None of these are correct d. Change in scale of operation
- A country’s current account position moves from a surplus to a deficit. What will be the result? Pick a,b,c, or d A) an increase in real GDP B) a decrease in unemployment C) an increase in the exchange rate D) a decrease in the money supplyQuestion 12 Which of the following methods does not adjust for the time value of money: A internal rate of return B net present value C profitability index D payback periodQ27 The various ways in which financial accounts can be adjusted for changing prices have come to be known as: a. Hyperinflation Accounting b. None of these are correct c. Inflation Accounting d. Deflation accounting