Profit maximization pupose cannot be an ideal basis for making business decision because of _________ a. Focus only on Accounting Profits b. Failure to consider risk c. Lack of time dimension d. All of the above
Q: Which factors are not covered in Peters' analysis?
A: Customer growth stems from when customer-centric companies use successful customer engagement…
Q: is(are)the reason(s) for profit maximization not a reasonable goal for firms. a. Profit concept…
A: Profit Maximisation Concept aims at carrying out the business activities in such a way that the…
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A: Total sales of a company can be divided into Margin of safety sales and break even sales.
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A: Company means the form of business where management is separately from owner and have perpetual…
Q: The objectives of financial management are Select one: O a. None of the options O b. Profit…
A: Financial or money management is done to maximize wealth in long term and profit in short term…
Q: why is profit maximization supposedly not the most important goal of a company
A: Profit Maximization: The process of raising the profit earning capacity of the business is known as…
Q: A profit center responsibility report ________. A. is the same as a performance report B.…
A: Profit center responsibility report is prepared using cost volume profit income statement format and…
Q: Which of the following statements is incorrect about working capital policy? Select the correct…
A: The amount of money a firm invests in current assets in order to accomplish its sales goals is…
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: A financial manager’s goal of maximizing current or short-term earnings may not be appropriate…
A: Financial Manager goal is to maximize the wealth of the shareholders by increasing the profitability…
Q: Which of the following is not a limitation of the income statement? a. Comparability between…
A: Income statement is a financial statement that indicates company's income and expenditure. It shows…
Q: Accounting Just because the gross profit margin is positive does not mean that a company will be…
A: Ratio analysis is a tool that establishes a relationship between the different items. It is used to…
Q: The Multi-Dimensional Statements Approach of Social Accounting was proposed to extend financial…
A: Following is the answer to the given question
Q: 6. Business risk is that type of risk in which: a) The company is unable to meet its financial…
A: Types of risk consist of financial risk, operational risk and business risk.
Q: Th e information provided by a low-quality fi nancial report will most likely :A . decrease company…
A: SOLUTION:- Financial reporting quality is related to the quality of the information contained in…
Q: Why do you believe businesses rely heavily on revenue recognition to inflate profits
A: Here is the Answer
Q: What is a difference in motivations for accounting methods between a favorable profit picture and a…
A: Accounting methods refers to several available accounting practices from which accountant can select…
Q: "Financial manager
A: Financial managers are the person who is responsible for the financial health of the company and…
Q: Economic stakeholders are all those who invest in the economic traffic with the business and who…
A: There are two types of stakeholder- Economic and social stakeholder
Q: a. Determine whether Excelsior obtain profit or incurred a Loss. b. If you were the CEO of Excelsior…
A: Financial Statements are the statements which records the business activities and shows the overall…
Q: What is the impact on profit for the year if income overstated? a. no effect b. profit will be…
A: Lets understand the basics. If there is error in recording the transaction then adjustment needs to…
Q: Profitability earning is a real barometer to measure the Select one: O a. Sales of business firm O…
A: Profitability earning is a key parameter of assessing the management of the organization and is an…
Q: A financial manager's goal of maximizing current or short-term earnings may not be appropriate…
A: Short-term profits are earnings generated by the sale of an asset that a firm has owned for one year…
Q: Financial analysis is significant because it a. Ignores qualitative aspect b. Judges operational…
A: Financial Analysis: Financial Analysis is the final step in the accounting process. The process of…
Q: Inflation accounting is favored by modern financial analysts over the historical cost accounting as…
A: Following are the disadvantages of historical cost accounting in comparison with inflation…
Q: /Identify the false statement: a. Cost accounting is based on data derived from financial accounts…
A: Cost and Management Accounting are maintained by the company in order to determine the cost of goods…
Q: The method of comparators can be applied using the ratio of operating income to revenue as a basis…
A: Operating Income is an accounting number that measures the amount of operating profit for a company…
Q: An advantage of small businesses is that the management of assets and liabilities is not a difficult…
A: The term assets refer to the resources that are owned by a company and these are sued for generating…
Q: dentify which one of the following statement is not correct: a. Dividend decision is the…
A: Explanation: A finance manager performs many functions in the company. Making dividend decisions is…
Q: Which of the following is correct about the Limitations of accounting? Select one: a. Accounting not…
A: The process of identifying, recording, summarizing, analysis of data is known as accounting. It is…
Q: A business that is below the operating break-even point:
A: The operating break even point for a business is the point at which sales revenue covers all of the…
Q: Examine the key reasons why a business may not want to hold too much or too little working capital.…
A: The key reasons why a business wants to hold efficient working capital is discussed below:…
Q: Explain how managers should not focus on the current stock value because doing so will lead to an…
A: The managers should act in the best interest of all the stakeholders. They should take such actions…
Q: Why is the profit maximization supposed not the most important goal of the company?
A: Solution Profit maximization is a process business firms undergo to ensure the best output and price…
Q: A company can increase its return on assets by doing which of the following: O a. Decreasing…
A: Return on assets = Net Income / Total assets Decreasing expenses while maintaining revenues:…
Q: Describe an adverse selection problem a company is facing. What is the source of the asymmetric…
A: When one party in a transaction has more or better information than another. Generally, this type of…
Q: t are the main hindrances in valuation estimates in business valuation?
A: Knowing how much an asset is worth and what factors influence its value is essential for making…
Q: Compare and contrast the net income margins of both Company A and B. Do you think the company with…
A: Net income margin = net income/sales
Q: What are the main hindrances in valuation estimates in business valuati
A: Knowing how much an asset is worth and what factors influence its value is essential for making…
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- Financial analysis is significant because it a. Ignores qualitative aspect b. Judges operational efficiency c. Suffers from the limitations of financial statements d. It is affected by personal ability and bias of the analysisManagement accounting reports on the profitability (and therefore the efficiency) of a business, whereas financial accounting reports om specifically what is causing problems and how to fix them. True or false?Short-term thinking can be disastrous for a business. What indicators are there to show that financial managers at Range take long-term approach to financial performance and control?
- Which of the following is not one of the criteria for revenue recognition? (Assume the company reports using ASPE.) a.Economic benefits will probably flow to the seller. b.Significant risks and rewards of ownership have been transferred. c.Continuing managerial involvement does not exist. d.Customers have an excellent credit rating.Which of the following best describes the potential impact of business risk on Earnings Quality? Select one: a. Business risk is mostly composed of financial risk factors and it has minimal effect on earnings quality. b. Higher earnings quality is linked with companies more insulated from business risk. While business risk is not primarily a result of management’s discretionary actions, this risk can be lowered by skillful management strategies.' c. A higher level of earnings quality can be observed in the industries with high business risk, because higher risk means higher returns d. For managing business risk, the managers almost have no discretion, therefore business risk is not directly or indirectly related to earnings quality.the decision making about profit sharing is a.long term financial decision msking b. Short term financial decision making c. Short term and long term financial decision making d. Is not a task of financial decision mak
- A financial manager’s goal of maximizing current or short-term earnings may not be appropriate because a. earnings are subjective; they can be defined in various ways such as accounting or economic earnings b. increased earnings may be accompanied by unacceptably higher levels of risk c. All of the choices d. it fails to consider the timing of the benefitsWhich of the following statements regarding flaws suffered by financial measures is not correct?A)They are hard to quantify.B)They do little to motivate employees to improve accounting profits.C)They are not effective in getting managers' attention.D)They are useful in identifying operational problems.E)None of the above.While business decisions should be data-driven and usually involve consideration of quantitative financial information, that doesn't mean that qualitative information is not important as well. The goal of management accounting is to provide relevant information for decision-making. Qualitative considerations require subjective judgement and need multiple opinions. List and discuss 4 examples of such qualitative considerations for both decisions to accept or reject a special order and make or buy decisions.
- Which statement is incorrect?a. Both financial accounting and managerial accounting adhere to objectivity and cost concepts.b. Cost accounting is a tool of both financial accounting and managerial accounting.c. Although financial and managerial accounting differs in many ways, they are similar in that both rely on the same underlying financial data.d. Managerial accounting places greater emphasis on the future than financial accounting, which is primarily concerned with the paste. None of the aboveWhich of the following statements is/are true? Select one: Non-financial measures are more difficult to action. Non-financial measures may reflect drivers of future financial performance. Non-financial measures are not consistent with contemporary management accounting. Non-financial measures are more difficult to understand.Companies have found that offering discounts to customers in return for early payment can be counterproductive in terms of the resulting adverse effect on profitability. This is when the reduction in profitability outweighs any marginal improvements gained from the benefit of a reduction in the working capital requirement. Required: Critically evaluate the methods that can be adopted to manage and achieve the efficient control of inventories and gain the resulting benefits for improving cashflow and ultimately profit in a business.