What are some limitations of financial performance measures?

Q: What’s the risk of competition on financial markets and institutions profitability?

A: Competitive risk or Risk of Competition is the force that will hinder the organization in achieving…

Q: How is the the financial ratio analyses very useful?

A: Ratio analysis is a method of relative measure between two numericals for gaining knowledge about a…

Q: What is the use and purpose of Financial Performance Measures and Non-financial Performance…

A: Although financial indicators are vital for performance evaluation, many businesses utilize a…

Q: The financial leverage implications for company performance?

A: Financial Leverage means the inclusion of debt in the company's capital structure. Debt is used to…

Q: What advantages does the forecasted financial statement method have over theAFN equation for…

A: Answer: AFN stands for “Additional funds needed” which is used to measure the amount of external…

Q: Why does financial planning usually equated with projections?

A: Financial planning is a stage process way of accomplishing individual's lifestyle goals. A financial…

Q: why is there a need to use different financial tools and techniques?

A: Financial statement analysis- It is the process of reviewing and analyzing financial statements to…

Q: What is Horizontal Analysis in Financial Analysis?

A: Financial statement analysis is the process of analyzing the financial statements of a company. It…

Q: Are the financial projections realistic and healthy?

A: Estimating things before the real cost and revenue incurred is known as financial estimation.…

Q: What is the causes of the financial risk?

A: financial risk - financial risk is the possible danger of losing money from an investment made by…

Q: What is capital rationing, what conditions lead toit, and how should it be dealt with?

A: Capital budgeting is a process in which capital projects are assessed in terms of their viability…

Q: How is capital budgeting similar to security valuation? How is it different?

A: Capital budgeting is the process of evaluating various projects' net present value to arrive at a…

Q: What is the compensation for price risk in finance? How do they arise and what issues arise due to…

A: Price risk: Price risk can be defined as the risk that price of a security may reduce. This risk is…

Q: The following question pertain to the financial sta

A: substantive audit procedure are processes, steps, tests performed by auditors, which creates…

Q: How behavorial bias affect investment behavior?

A: Behavioral bias is the belief by the investors that unknowingly affects the investors investment…

Q: What methods could be used in profit planning?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Discuss how the Accounting Rate of Return as an investment appraisal method is better than the Net…

A: Accounting ROR or ARR and Net Present Value(NPV) are tools that are used to make selection among…

Q: What is/are the importance of identifying the gaps to make financial projection feasible?

A: A gap analysis is a method for comparing present performance to desired, expected performance. This…

Q: What is the quantitative disclosure of lessor?

A: Definition: Lease: Lease is a contractual agreement whereby the right to use an asset for a…

Q: Analyze the disadvantages of financial performance measures and the advantages of non

A: Disadvantages of financial performance measures  1 They indicates short term performance measures. 2…

Q: How do economies of scale and lumpy assets affect financialforecasting?

A: Economies of scale are cost advantages reaped by companies when production becomes efficient.…

Q: Explain the difference between the financial statement approach and the valuation approach. Which…

A: Financial statement approach: Under this approach, the company prepares an income statement, cash…

Q: What are opportunity costs? Explain why opportunity costs are not recorded in financial accounting…

A: Opportunity cost is the value or benefit of the next best alternative given up when making a choice.…

Q: What are the fundamental elements of an adequate financial planning process. What are the…

A: Answer: Financial planning is nothing but an on-going mechanism for the advancement of the course…

Q: Explain the difference between deterministic and probabilistic financial planning models.

A:

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: Are the use of non-GAAP financial measures ethical?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: Sensitivity analysis is concerned with determining how much variation in financial data, the…

A: Sensitivity  analysis is a monetary model that decides what target factors are meant for dependent…

Q: What is the difference between a cash basis and an accrual basis measure of performance?

A: Cash Basis :- It is an Accounting Method where Revenue and Expense are identify at the time of…

Q: What is the risk in the context of financial decision making and performance?

A: Financial decision making: Financial decision making denotes to decision making concerning financial…

Q: What will be Measures of Investment Performance Using Ratios?

A: It is always essential to evaluate the performance of the investments to decide whether the…

Q: How does the risk return trade-off relate to the financial manager's main goal?

A: The main goal for a financial manager is to generate the maximum value of the firm to its owners.…

Q: Explain the difference between financial risk andbusiness risk.

A: Risk is referred as the chance of loss. An activity which leads to loss is termed as risk. The risk…

Q: s it important to identify what costs will be eliminated in the conduct of finan

A: Turnaround recovery ways are a variety of measures that corporations use to get over a amount of a…

Q: What factors are frequently ignored in financial analysis? Why?

A: Qualitative factors are the factors that deal with an intangible as well as inexact information that…

Q: financing and investment decisions.

A: Financial decisions are those decisions which are concerned with the financial matters of a…

Q: What is the cost constraint, and how does it affect financial reporting?

A: Under financial accounting, constraints are referred to as boundaries or guidelines prescribed in…

Q: Why is the application of fair value principle in measuring the financial position less objective…

A: the application of fair value principle in measuring the financial position is less objective than…

Q: What is a compensating control? Give some examples for finance and investment cycle account

A: Compensating Control: A compensating control refers to alternate measures that organizations can use…

Q: What are some qualitative factors that analysts should consider when evaluating acompany’s likely…

A: Qualitative factors are the factors which are non quantifiable for the examination of operations and…

Q: What is Vertical  Analysis in Financial Analysis?

A: Financial Statement- Financial statements describe an entity's financial activity and condition. At…