Why can we not invest net income? Explain with an example?

Q: What are some financial goals

A: Financial goals are the targets to aim at when it comes to managing money. Involves saving,…

Q: What is meant by the concept of “potential savings (profits)”?

A: Profit is the total revenues less all costs and expenses. In other words, profit is the net earnings…

Q: What is “fair value”? Consider whether it is really helpfulwhen reporting financial results. Give…

A: Fixed assets: These include all the assets that are of tangible nature and have an expected useful…

Q: How did you decide whether the situation is a profit or a loss?

A: A profit and loss (P&L) statement is a financial statement that details the revenues,…

Q: For what three main reasons is profit maximization inconsistent with wealth maximization?

A: Profit maximization is the traditional approach which only focuses on increasing the profit of the…

Q: Explain the middle-income trap issue and elaborate the possible solutions to address the…

A: Traps:  There are various traps in finance and the economy, where individuals and countries can get…

Q: How behavorial bias affect investment behavior?

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

Q: You want to argue against the taxation of interest income. a) Which simple interpretation of the…

A: Atkinson–Stiglitz-: The Atkinson–Stiglitz theorem is simply a theorem of public economics which says…

Q: What is passive income? Explain and give examples.

A: Passive Income  An income from a source which is somewhat diverse than  a contractor or an employer…

Q: EBITD is equivalent to profits after taxes. true or false?

A: EBITDA is the earnings before interest tax depreciation and amortization.

Q: Why are people willing to pay financial intermediaries their transaction costs, at our expense?

A: The question is based on the concept of function and operation of intermediaries in financial…

Q: Why do net income and net cash flow differ?

A: Net income vs Net cash flow:

Q: what is meant by Profit and Cashflow and how they are different?

A: Each and every business organization deals in either goods or offering services to their customers…

Q: In general, what is true of people's risk aversion for changes in income that are marginal (i.e.,…

A: Risk Aversion: It is the propensity of individuals to favor results with low vulnerability to those…

Q: Which you prefer, equity or fixed income?

A: Differences between equity and fixed income: Equity: Corporates issues most of the equity There is…

Q: allocation of income or loss to have economic effect

A: Income or loss is the net result of operational activities of a business conducted during a…

Q: financial gain

A: ANSWER- ECONOMIST  The Economist online offers authoritative insight and opinion on international…

Q: What is gross profit? How do you calculate it?

A: Gross margin (gross profit): Gross margin is the amount of revenue earned from goods sold over the…

Q: What are financial obligations? How they can be overcome?

A: Liabilities:The claims creditors have over assets or resources of a company are referred to as…

Q: Explain Growing Income through Provision of Services?

A: Commercial activity between a service provider and the client as the initial agreement is called the…

Q: Taxation can be used to reduce the welfare loss arising from a negative externality. Select one: O…

A: True

Q: What is the difference between capital expenditure and revenue expenditure?

A: Capital Expenditure: Expenses Incurred and the corresponding benefit out of such expenses lasts for…

Q: Why should we consider transaction costs in examining the role that money plays in society?

A: Transaction Cost: It is the expenses incurred from buying or selling of goods or services. It is the…

Q: What is meant by capital structure and how is it different from financial structure?

A: Capital structure of the company can be defined as the combination of various sources such as debt,…

Q: The relationship between value and its expression in the form of money reflects in a transparent way…

A: Correct answer is (a) True.

Q: Why does Non-GAAP earnings are controversial?

A: Definition: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to…

Q: What is Profit and Loss (PNL)?

A: A business organisation is established with an objective to make money and increase the worth of the…

Q: Why isn’t accounting net income used in the net present value method of making capitalbudgeting…

A:

Q: Which is more important, saving or investing? Justify your answer

A: First let us know the difference between saving and investing. Saving is the amount of money saved…

Q: profits and losses equally

A: Correct Answer :- B Peter  P170,000. And  john P90000

Q: The DPBP is ideal as a stand-alone measure of economic worth. True or False?

A: Discounted Pay-Back Period or DPBP is period in which discounted value of future cash inflows is…

Q: Do you use an income-statement strategy?

A: The income statement is one of three financial statements of an entity.(The others are the balance…

Q: Explain Growing Income through Development?

A: Introduction: The given question is based on the concept of increasing income to existing investors…

Q: What will be the Motivations for Investing in Income Properties?

A: Income properties are the real estate properties that provide income in the form of rents, leases,…

Q: Explain the concept of capitalization effects?

A: Capitalization means recording an expense or cost on the assets side of the balance sheet and…

Q: What Role does Finance Play in Social responsibility?

A: In addition to maximizing shareholder profit, social responsibility requires firms to operate in…

Q: (b) ( of taxation state? Briefly explain the major shortcoming of this principle. What does the…

A: According to the benefit principle of taxation, the government would be charged for employing all of…