Suppose the current assets of a company decrease over time while all else remains unchanged, then     ROI will not be affected.     ROI will increase over time.     ROI will decrease over time.     None of the items in this list of answers.

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…

Q: The degree of operating leverage cannot be used to compare companies. measures how much of each…

A: Operating leverage is a financial efficiency ratio which is used to measure the effectiveness of…

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: Break-even analysis is concerned with determining  a point at which the company can minimize total…

A: Breakeven analysis is very important done by management and cost accountants of the business. With…

Q: Which of the following is a basic limitation associated with ratio analysis

A: Ratio Analysis is very helpful in analyzing the balance sheet and income statement items and…

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: Can Retained Earnings grow too large? If so, what strategies might management take to reduce it

A: Answer: Retained earnings is the cumulative or collective profit hold by company in shareholders…

Q: Company X sees a disruption in its supply chain at the same time it sees a decrease in customer…

A: A supply chain network is an organization of individuals, associations, and exercises that move an…

Q: Explain why a segment with an operating loss can cause the company to have a decrease in total…

A: Introduction A segment is eliminated based on the comparison of total cost incurred by that segment…

Q: What does it mean to use the DuPont model to help explain a decrease in ROI?

A: Introduction: DuPont analysis is done to find out the various drivers that account for the return on…

Q: If a firm has a current ratio less than 2.0 and a quick ratio less than 1.0, will the company…

A: The current ratio is the liquidity ratio of an entity which measures an entity’s ability to pay its…

Q: Suppose a company’s return on invested capital is less than itsWACC. What happens to the value of…

A: When the company’s ROIC is below the WACC, it indicates that the value is destroyed because the…

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: There is an old business saying that “You shouldn’t be inbusiness if your company doesn’t earn…

A: This saying is completely true. Because business is done for profit, and interest is an expenses if…

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: 1. What is the controllable margin of Black Company? 2. What is the average operating assets of…

A: Solution:- 1) calculation of controllable margin of Black Company as follows:-

Q: Can you identify a possible explanation for the company’s declining profits? If so, what is it?

A: Company's declining profits can be possible due to overhead expenses.  Overhead costs are the…

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: Return is the probability that a firm will be unable to pay its bills as they come due.     True…

A: Risk and return are two important factors that are always measured and analysed for every business.…

Q: What disadvantages do you see if the chief executive officer (CEO) is primarilyconcerned with…

A: Return on investment is the amount of revenue that is produced on a venture. By measuring the return…

Q: If a firm decreases its operating costs, all else constant, then the: A. profit margin will…

A: Price-to-Earnings (P/E) Ratio is computed by dividing the market price of share/stock by its…

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: While being in different industries, two companies have the same expected earnings per share and the…

A: Business risk is the exposure to risk a company faces from the internal and external factors which…

Q: if costs are two high: Select one: a. Company loses work b. Company loses money C. It means error in…

A: Costs denote the amount that a company spends on the creation or production of goods and services.

Q: Why might a manager focused solely on accounting numbers miss opportunities for future benefits?

A: The accounting manager oversees the accountant. Create systems and processes for analyzing and…

Q: Discuss and explain the difference between profit/loss and cash flow.

A: Given: The difference between the profit/loss and cash flow of the finance of the entity or an…

Q: Which one of the following is an advantage of LIFO? a. In periods of rising prices, less income…

A: >> LIFO Method means Last in first out i.e latest purchase is sold first. >> In rising…

Q: Assets are the resources of a company and are expected to yield future benefits.  Group of answer…

A: The resource is an item that can be used in the business to generate profits and revenues.

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: what if in the future, it will earn a negative RCE. Is this possible for a company? Why?

A: RCE = return on capital employed. ------------------------ Return on capital employed is the ratio…

Q: Questions: Does a low return on sales indicate a weak company? (Y/N). Explain your answer. Do…

A: Multi Step statement of comprehensive income shows all incomes and all expenses of the business at…

Q: Provide 2 examples of situation where the use of ROI can lead to decisions which may harm the future…

A: Return on investment: Return on investment (ROI) or return on costs is a ratio between net income…

Q: Which one of the following statements is correct: O a. At periods of economic downturn, companies…

A: Margin of safety means the difference between the budget sales and breakeven sales. It means the…

Q: Cost Concept Shaded cells have feedback Financial Statements Shaded cells have feedback A business…

A: Owners’ equity: It depicts to the proportion of the total assets of the company that are owned by…

Q: Which of the following statements about operating leverage is false? O a. Keeping all factors…

A: Operating leverage: It is a cost account accounting method or technique used by the firm to measure…

Q: What does a consistently negative responsibility marginimply will happen to the operating income of…

A: The revenue less occurred variable costs(VC) and also the traceable fixed costs(FC) could result in…

Q: Which of the following statements most likely describes a situation that would motivate amanager to…

A: When the financial statement of an entity includes data which can mislead the users or the data is…

Q: Profit maximization pupose cannot be an ideal basis for making business decision because of…

A: Profit maximization cannot be an ideal basis for making business decision because It focuses only on…

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…