Which practical questions should a potential buyer ask? A. What can go wrong?
B. What are the alternatives?
C. Is risk avoidable?
D.What is the likely return?
E. Is the risk worth the return?

Answers

Answer 1

Options A, D, and E are the real-world inquiries a potential buyer should make.

What pertinent inquiries need a prospective buyer to make?

The questions potential buyer should ask are stated  below:

What could possibly go wrong?To determine the potential risk that might arise after acquiring the goods, this question is posed.

How likely is the return?The purpose of this inquiry is to ascertain whether using the product would be advantageous.

Does the danger outweigh the reward?Only if the possible advantage outweighs the potential risk should the transaction be done.

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Related Questions

"re especially useful for relationship marketing. O Apps O Podcasts O Social networking sites O Media networks O Wikis

Answers

Social networking sites is especially useful for relationship marketing.

What is social networking?Social networking sites (SNSs) are online communities where users can make public profiles of themselves, communicate with friends in real life, and connect with others who share their interests.A social networking site is an online community where users can connect with one another and build public profiles. Social networking sites typically let new users create a list of contacts they have a connection with, and those contacts can subsequently confirm or deny the linkA social networking site is sometimes referred to as a social website or a social networking website.

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a new project has been assigned to you to revolutionize education through technology. the project team consists of several very creative and talented individuals. you plan to deliver the project in iterations, prioritizing based on business value. you have assembled your team and brainstormed a few items for the product backlog. during the assessment process a rather heated debate has begun about a user story. some feel it will be very difficult to implement, while others feel it will be easy. what should you do?

Answers

As a team for assessment process you should bargain a contract for your labour.

Of the following, which should be a part of the process improvement plan?

the procedure's metrics at this time. An improvement plan for the process includes metrics for the present procedure. To assessment process a process' efficacy, process metrics are combined with control limitations. Project managers can also be Scrum masters, although the two roles are distinct from one another. While a project manager can be the person in charge of almost any kind of project, a scrum master is a function that is unique to Scrum teams.

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If a company which is included in the OEX pays a stock dividend, which of the following is true regarding the index option contract

Answers

Option D is correct. The following is true regarding the index option contract is
Stock indexes are not reduced for stock splits, stock dividends, or cash dividends. Since the aggregate value of all of that company's shares is included in the index, a stock split or dividend has no effect.

An index option contract is a financial contract that gives the holder the right, but not the obligation, to buy or sell a specific stock market index, such as the S&P 500 or the NASDAQ-100, at a predetermined price and date. The value of the contract is based on the value of the underlying index, and the holder of the contract can make a profit or loss based on the movement of the index.

Index options are used by investors as a way to speculate on the future direction of the stock market or as a way to hedge against market risk. They can also be used by institutional investors and traders as a way to manage portfolio risk and to gain exposure to the stock market without having to directly buy or sell individual stocks.

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Complete Question is -
If a company which is included in the OEX pays a stock dividend, which of the following is true regarding the index option contract?

I There is a reduction in the index value

II The index value remains the same

III There is an increase in the number of shares covered by the contract

IV The contract multiplier remains the same

A

I and III

BI and IV

CII and III

DII and IV

Compute the number of dependents in each of the follwoinf indpendent situations:
a.) Reginald, a U.S. citizen and resident contributes 100% of the support of his parents who are citizens of canada and live there.
b.) Pablo a U.S. citizen and resident contrubutes 100% of the support of his parents who are citizens of Panama. Pablos father is a resident of Panama, and his mother is a legal resident of the United states.
c.) Gretchen , a U.S. citizen and resident , contributes 100% of the support of her parents who are U.S. citizens but residents of germany.
d.) Elena is a U.S. citizen and a resident of italy. Her household includes Carlos a four year old adopted son who is a citizen of Spain.

Answers

In the given situations apart from situation given in d. rest all have dependency as per the governments and exemptions.

In a. The parents qualify as dependents under the Mexico/Canada exception. b. Pablo's father does not qualify because he is a citizen and resident of Panama; as a resident of the United States, Pablo's mother does qualify. c. The parents qualify because they are U.S. citizens. d. Under a special exception, an adopted child need not be a citizen or resident of the United States Someone who is financially dependent on another person is referred to as a dependent, which might include kids or other family members. As long as the dependant satisfies the Internal Revenue Service's definition of a qualified dependent, the taxpayer is permitted to claim a dependency exemption on to there tax return (IRS).

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for this economy to move from point b to point c so that an additional 20 plasma televisions could be produced, production of lcd televisions would have to be reduced by

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This economy would need to change from point b to point c in order to make 20 more plasma televisions, which would require a 60 percent decrease in the manufacturing of LCD televisions.

Is a minute made up of exactly 60 seconds?

A mean solar day has exactly 24 hours, a minute is exactly 60 seconds, an hour is exactly 60 minutes, and a year is exactly 365.24 solar days.

Why does a minute have 60 seconds?

The Babylonians utilized a sexagesimal (counting in 60s) system for astronomy and mathematics, which is where the division of the hour into 60 minutes and the minute into 60 seconds originates.  The Sumerians, who used it as early as 3500 BC, were the source of their numerical system.

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a general risk component representing the variability of a stock's total return as it directly relates to overall movements in the general economy is known as

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The concept here is Systematic Risk. It refers to the risk inherent to the entire market or market segment.

Systemic risk, also known as market risk, is the volatility of overall stock returns that is directly related to general changes in the economy and cannot be eliminated through diversification.

It is widely recognized that the root cause of systemic risk is an external event, such as a natural or man-made disaster such as a hurricane or the outbreak of war.

The SRC believes that systemic risk is primarily due to endogenous risk created by and within the financial system and subsequently magnified by the system, including the economy, interest rates, geopolitical issues, health organizations and other factors .

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a may be part of a broader program, or it may be a self-contained single-use plan, as it is generally of less scope and complexity. a. rule b. standard operating procedure c. project d. contingency plan e. regulation

Answers

Correct option is C.

A undertaking is similar to a application however is commonly of much less scope and complexity. A challenge may also be a part of a broader program, or it may additionally be a self-contained single-use plan.

What are examples of single use plans?

Single-Use Plan

Such single-use plans can't be used many times on the grounds that they turn out to be useless after they have executed their objective. Some examples are budgets, programmes, project reports, etc.

What are the two categories of single use plans?

Two Types of Single-use Plans are 1. Programmes, two Budget! A programme capability a single-use comprehensive graph laying down the 'what', 'how', 'who' and 'when' of accomplishing a particular job.

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question:a customer buys a 10% g.o. bond at 90. the issue is callable in 5 years at par and matures in 10 years. which statement is true?

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a customer buys a 10% g.o. bond at 90. The yield to call is lower than the yield to maturity

Later, as commerce expanded, human connections became less durable and more dependent on transient needs as opposed to enduring social desires. Customers are often thought of as those who make purchases of goods and services, whereas clients are people who receive personalized advice and responses. [3] Despite the fact that these distinctions have no contemporary semantic weight, organizations like legal firms, film studios, and health care providers tend to favor clients, whereas supermarkets, banks, and restaurants tend to favor customers.

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The complete question is here:

A customer buys a 10% G.O. bond at 90. The issue is callable in 5 years at par and matures in 10 years. Which statement is TRUE?

A. The yield to call is higher than the yield to maturity

B. The yield to call is lower than the yield to maturity

C. The yield to call is the same as the yield to maturity

D. The nominal yield is lower than either the yield to call or yield to maturity

Your supervisor has asked you to put some contingency reserve into your project plans. Which of the following is NOT true about contingency reserve?(a) Contingency reserve is used to reduce anticipated risk to the project budget or schedule.(b) Contingency reserve is an allocated amount above the specific project estimates.(c) Contingency reserve may be determined as a percentage of the total project cost estimate.(d) Contingency reserve can be applied to the project estimated cost, but not to the project schedule.

Answers

(d) Contingency reserve can be applied to the project estimated cost, but not to the project schedule.

For a project, work package, or activity, a contingency reserve is allotted. It applies to both time predictions and cost projections, which may result in risks specific to each project. When considering the entire project risk, the contingency reserve is also applicable.

The term "contingency reserve" itself implies that a reserve will be used if specific conditions are met. It is set aside for both time and money. A fixed amount, a proportion of the projected time or cost, or something created by applying quantitative analysis tools.

It is a component of the cost baseline or the schedule baseline. It addresses dangers that are acknowledged but does so with uncertain rework. It is employed when using the "Accept" risk response technique, or more precisely when using the active response tactic.

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Which of the following is NOT a temporary account? a Unearned Revenue. b. Salary Expense C interest Revenue d. Consulting Expense.

Answers

The temporary account will be Unearned Revenue

Unearned revenue represents compensation for services not rendered. It is regarded as a liability, making it a real account rather than a makeshift one. False; as it appears on the income statement, accumulated depreciation would be a transient account.

While revenue and expense accounts were also transitory accounts that can be found on company income statement as well as should close each reporting period, assets, liabilities, as well as equity accounts all seem to be everlasting accounts that can be found on any balance sheet.

Revenue accounts, cost accounts, as well as income summaries are the three different categories of temporary accounts.

Therefore, the correct answer will be option (a)

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according to business insider, automatic data processing, inc. (adp) engages in the provision of business outsourcing solutions and specializes in cloud-based human capital management. adp is a preferred vendor for payroll systems, and since it processes millions of checks for its customers, it is a respected source of information about unemployment rates through its monthly national employment report. adp's development and study of employment trends was a(n) decision affecting its long-run profitability and growth.

Answers

Strategic choices are those choices that have an affect over years, decades, and even past the lifetime of the project. Once a strategic decision is made, it is very unlikely to be altered in the quick term.

What is strategic selection and tactical decision?

Strategic planning lays out the long-term, broad goals that a commercial enterprise or individual needs to achieve. And tactical planning outlines the short-term steps and actions that have to be taken to achieve the goals described in the strategic plan.

To stay competitive and survive, corporations ought to make decisions that will maximize temporary consequences and minimize long-term risks. Strategic decision-making uncovers the future probabilities for a organization and these preferences that can be applied to obtain success

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entry-level audit professionals in today's environment need to first learn how to make the best use of blank . multiple choice question. internal data and information produced by the entity big data sources that are external to the entity

Answers

The entry-level audit professionals in the today's environment need to first learn how to make best use of the internal data and information produced by entity.

What is an audit?

According to the definition of an audit, it is "an independent assessment of the financial accounts of any company, whether profit-oriented or not, regardless of its size or legal form, when such an examination is done with a view to providing an opinion on the financial statements." Furthermore, auditing tries to verify that the business is keeping its books of accounts in compliance with the law. A variety of stakeholders can independently verify the accuracy of the information thanks to the audits' findings. Secretarial and compliance, internal controls, quality management, project management, water management, and energy conservation are some more areas that are regularly audited. Stakeholders can evaluate and improve the effectiveness of the governance, risk management, and control of the subject matter after an audit.

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80) a scheme in which a recently acquired property is resold for a considerable profit with an artificially inflated value, often as the result of collusion with an appraiser is known as:

Answers

A property flip is a real estate scheme in which a recently acquired property is resold at a substantial profit with an artificially inflated value. This scheme can be used to deceive and exploit both the buyer and the seller and is illegal in many jurisdictions.

This scheme is often conducted in conjunction with an appraiser who provides an overestimated property value and can be used to avoid taxes and other legal obligations. The property is often sold quickly and for a much higher price than it was purchased for, allowing the original buyer to make a large profit. Flipping a property can also involve fraudulent activities such as misrepresenting the condition of the property or concealing potential problems from the buyer.

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what is the effect of declaring a stock dividend on the liabilities and stockholders' equity section of the balance sheet?

Answers

When a firm distributes stock dividends, the retained earnings of the business are decreased and the common stock account is increased.

A dividend in the form of extra shares rather than cash is known as a stock dividend. Parts of each existing share are given out as distributions. A corporation could pay 0.05 shares for each share a shareholder owns if it declares a stock dividend of 5%, for instance. Whatever stage of life you're in, dividend-paying stocks may be a terrific way to supplement your income and increase the growth potential of your investment portfolio. Simply be sure that prior to investment, you investigate the financial stability of the company as a whole, not just their dividend yields. From a dividend investor's perspective, a range of 35% to 55% is seen as healthy and suitable. It indicates that a business is well-established and a leader in its sector when it distributes nearly half of its earnings as dividends.

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bixel components manufactures products a1 and a2 from a joint process. total joint costs are $250,000. the sales value at split-off was $292,500 for 2,700 units of product a1 and $157,500 for 900 units of product a2. required: assuming that total joint costs are allocated using the net realizable value at split-off approach, what amount of the joint costs was allocated to product a1? (do not round intermediate calculations.)

Answers

Assuming that the net realizable value at split-off method is used to apportion total joint costs, product A1 received $162,500 of the total joint costs.

What Is Joint Product Cost Allocation and How Does It Work?

If the same production process was used to create the joint products, the cost must be divided between the two individually. The two methods for allocating costs are the selling value technique and the gross margin approach.

Joint costs occur when a firm produces a large number of products and its cost function cannot be fully segregated. The products are then "jointly" created at a cost. Cost allocation is the method through which product costs are produced in the face of shared costs.

Total sale value = $292,500 + $157,500 = $450,000

Percentage of A1 in total sale = $292,500/$450,000 = 0.65 or 65%

Allocation of joint costs using the split-off approach's Net Realisable Value

Joint cost of product A = $250,000 X 0.65 = $162,500

Therefore, product A1 will be responsible for paying a total of $162,500.

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yowell company began operations on january 1, year 1. during year 1, the company engaged in the following cash transactions: 1) issued stock for $40,000 2) borrowed $25,000 from its bank 3) provided consulting services for $39,000 cash 4) paid back $15,000 of the bank loan 5) paid rent expense for $9,000 6) purchased equipment for $12,000 cash 7) paid $3,000 dividends to stockholders 8) paid employees' salaries of $21,000 what is yowell's net cash flow from operating activities?

Answers

The net cash flow from the operating activities of Yowell company is $65,000.

What is net cash flow?

Net cash flow refers to the increase or decrease in the amount of money over time (after all debts have been paid). After paying all of its operating expenses, a business is said to have positive cash flow if it still has money left over. A company is said to have a negative cash flow if it spends more on liabilities and obligations than it makes through operations. A company's negative cash flow doesn't necessarily indicate that it can't pay its debts; rather, it only indicates that the money it received during that time wasn't sufficient to do so. More sales earnings or fewer commitments, for example, could result in positive net cash.

Net cash flow= $40000+$25000= $65,000

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publishers are always very sure of how many books to produce in a print run of a new book. group of answer choices true false

Answers

Publishers are always very sure of how many books to produce in a print run of a new book, is the true statement.

What is publishers?

a company that puts out newspapers, magazines, or books. A person in a business who is in charge of publishing specific books, journals, or newspapers also goes by the title of publisher.

Publishers of newspapers and magazines like Gannett, New Media/Gatehouse, and Condé Nast, as well as broadcast media organizations like Bloomberg, Fox News Network, and WarnerMedia, are a few examples of this. In contrast, the majority of brand publishers consider their media strategies as a lengthy game.

Thus, it is the true statement.

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dane stores begins the year with $30,000 of dvd inventory. it purchases dvds worth $80,000 during the year. the cost of goods sold for the year is $70,000. what is the amount of ending inventory? multiple choice $30,000 $40,000 $20,000 $10,000

Answers

Dane Stores begins the year with $30,000 of DVD inventory. It purchases DVDs worth $80,000 during the year. $40,000 is the amount of ending inventory.

Option B is correct.

Calculating the problem:

DVD inventory = $ 30,000

DVD purchase = $ 80,000

COGS for the year is $70,000.

So ending inventory = $ 30,000 + $ 80,000- $ 70,000

                                 = $ 40,000

What makes up the final inventory?

The total value of the goods you have available for sale at the end of an accounting period, such as your fiscal year, is your ending inventory. Ending inventory is the amount of inventory a company has in stock at the end of its fiscal year. It is an inventory accounting method that helps retailers benchmark net income, obtain financing, and conduct accurate stock checks.

Ending inventory cost, which is the amount spent to stock these goods, is closely linked to it. It should be calculated using either the market or the lowest cost.

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Which of the following statements is correct?a. If a company uses the residual dividend model to determine its dividend payments, dividends payout will tend to increase whenever its profitable investment opportunities increase.b. The stronger management thinks the clientele effect is, the more likely the firm is to adopt a strict version of the residual dividend model.c. Large stock repurchases financed by debt tend to increase earnings per share, but they also increase the firm's financial risk.d. A dollar paid out to repurchase stock is taxed at the same rate as a dollar paid out in dividends. Thus, both companies and investors are indifferent between distributing cash through dividends and stock repurchase programs.e. The tax code encourages companies to pay dividends rather than retain earnings.

Answers

Large stock repurchases financed by debt tend to increase earnings per share, but they also increase the firm's financial risk is the correct statement. Therefore, the option C holds true.

The earnings per share of an organization can be easily understood as the amount that represents the total of total earnings made by the company, which is divided by the total outstanding units of the company's stocks. The earnings per share are highly subject to change, and also affect the financial risk of the company.

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the nielsen television index is a set of information of known commercial value that is provided to multiple clients on a subscription basis. the nielsen index is an example of .

Answers

A collection of data with known commercial value is made available to several clients via membership in the nielsen television index. One illustration is the Nielsen Index.

The solution is syndicated services.

What is a collection of a data?

To answer specified research questions, test hypotheses, and assess results, data collection is the act of acquiring and measuring information on variables of interest in a systematic and defined manner.

A collection data type in a column is a collection of values of a single data type. An element is a term used to describe each value. A type constructor and an element data type are used to define a collection data type. The type constructors control whether the database server organizes the elements or checks for duplicates.

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during the current year, a voluntary health and welfare organization receives $300,000 in unconditional pledges. of this amount, $100,000 has been designated by donors for use next year to support operations. if 15% of the unconditional pledges are expected to be uncollectible, what amount of unrestricted support should the organization recognize in its current-year financial statements?

Answers

The unrestricted grant amount of $170,000 should be included in the organization's financial statements for the current year.

Financial Statements: What Are They?

The economic activities and economic results of the organization are described in the accounting report that is written. Financial statements are often audited by public entities, auditors, companies, etc. to ensure accuracy and for taxation, financing or investment purposes. The balance sheet, income statement, cash flow statement and statement of changes in equity make up the main financial statements of a company. income statement

List of materials

The balance sheet gives a quick picture of the assets, liabilities and equity of the company at a given moment. When a snapshot is taken, which is often at the end of reporting, it appears at the top of the balance by date.

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martha has just been paid cash for some small home repairs. martha is displeased with the government's spending priorities and, therefore, is hesitant to report the income on her tax return. she eventually decides to report the money because she feels that obeying the law is essential to the well-being of society. this reflects which level of moral reasoning?

Answers

The correct answer is B. This reflects the Conventional level of moral reasoning.

The traditional stage of moral reasoning is normal for teens and adults. To reason in a conventional way is to choose the morality of movements by means of comparing them to society's views and expectancies. The traditional level includes the 1/3 and fourth ranges of moral development.

Conventional morality is the second level of ethical development and is characterized by using recognition of social regulations concerning right and wrong. on the conventional level (maximum children and adults), we begin to internalize the moral standards of valued grownup function fashions.

The traditional degree is the second degree and takes place all through youth and maturity. at some point at this level, people begin to broaden personal ethical codes by internalizing the regulations of grownup function models.

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Complete Question:

Martha has just been paid cash for some small home repairs. Martha is displeased with the government's spending priorities and, therefore, is hesitant to report the income on her tax return. she eventually decides to report the money because she feels that obeying the law is essential to the well-being of society. this reflects which level of moral reasoning?

A. Preconventional

B. Conventional

C. Postconventional

D. Transition to level II

the managerial accountant reported the following: fixed costs: $3,000 target operating income: $1,500 contribution margin percentage: 25% what will be the revenues needed to earn target operating income of $1,500?

Answers

Goal operating income for $1,500 requires revenues of $18,000.

What does operational income mean?

After all operational expenses and inflation have been factored into the equation, net revenue is the business's compensated revenue. Operating expenses are the costs incurred to sustain the running of the company.

Are operational and EBIT the same thing?

With the costs of something like the debt financing and indirect taxes removed, Roe is used to assess the profitability of a company's primary operations. Since interest and taxes aren't factored into the computations, EBIT is also referred to as operational income.

revs needed=(FC+TOI)/CM%

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campaign reporting provides many metrics to assess if a campaign is performing to expectations. if an objective is getting as many new users as possible at a certain cost, what two metrics might be most important to review? (choose two.)

Answers

Answer:

Explanation:

If the objective of a campaign is to get as many new users as possible at a certain cost, two metrics that might be most important to review are:

Cost per Acquisition (CPA): This metric measures the cost of acquiring a new user through the campaign. To achieve the objective of getting as many new users as possible, the CPA should be as low as possible. The lower the CPA, the more cost-effective the campaign is in acquiring new users.

Conversion rate: This metric measures the percentage of users who take a desired action (e.g., sign up, purchase, download) out of the total number of users who were exposed to the campaign. A high conversion rate indicates that the campaign is effectively convincing users to take the desired action. Therefore, it would be important to keep an eye on the conversion rate of the campaign to make sure it's high enough to reach the objective.

Both metrics are essential to evaluate the performance of the campaign, CPA will give us an idea of the cost of the campaign and conversion rate will give us an idea of how well the campaign is doing in terms of getting new users.

do your beneficiaries get the interest earned on an iul, and do they pay taxes on the interest portion?

Answers

Interest earned on an IUL, or indexed universal life insurance policy, is tax-deferred, meaning that the policyholder does not pay taxes on the interest earned until the funds are withdrawn.

Beneficiaries of the policy will receive the death benefit, which includes the accumulated cash value, tax-free. However, if the beneficiaries withdraw cash from the policy, they will be subject to income tax on the interest portion of the withdrawal.

It's always important to consult a professional financial advisor or tax expert to make sure you understand the tax implications of any financial decision.  IULs are designed to provide a balance between protection and growth potential, with the potential for higher returns than traditional universal life insurance policies. However, the growth in cash value is not guaranteed and will depend on the performance of the index.

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what amount should dallas report as earnings from subsidiary, before amortization of any acquisition premium, in its year 1 income statement?

Answers

Dallas should report as earnings a total of $16,000 as well as remember to include dividends in their statement.

Sub's RE statement 1/1/1: $36,000+ NI: + 20,000 (plug) - Dividends: - 5,000

= 12/31/1: $51,000

20,000 x 0.80 (ownership is shared in sub) = $16,000

An income statement is one of three key financial statements that a firm uses to report its financial performance during a certain accounting period. The balance sheet and cash flow statement are the other two important statements. The income statement examines a company's revenue, expenses, profits, and losses over a specified time period.. An income statement, also known as a profit and loss (P&L) statement or a revenue and expense statement, gives vital insights into a company's operations, managerial efficiency, underperforming areas, and performance relative to industry rivals. Revenue, expenses, profits, and losses are the four components of the income statement.

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(a) Calculate the total producer surplus at the market equilibrium price and quantity. Show your work.

Answers

The graph's points Q and P stand in for the producer's minimal selling price and the actual market price, respectively, on the ordinate, while points S and T stand for the quantity sold at equilibrium, or when demand and supply are equal.

Producer Surplus = ½ × PS × (OP – OQ)

What is a market equilibrium?The market equilibrium is the region where the supply and demand curves connect when they are combined. Both the price and the quantity are at their equilibrium values at this intersection. When the supply of something is equal to the demand for it, market equilibrium is reached. Examine the subtleties of supply, demand, and equilibrium in economics using examples from everyday life, such as flat-screen TVs and gas pricing. The balance between supply and demand determines an equilibrium price. Prices tend to return to this equilibrium until specific factors in supply or demand change.When either supply or demand shifts or moves, or when both do so, the equilibrium price changes.

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ted wants to hire more inspection personnel to insure that all products shipped are free of defects. what tqm core value would this action violate?

Answers

If Ted wants to hire people for inspection for ensuring that all products are shipped defect-free, it will violate the TQM action of prevention is better than rework. Therefore, the option B holds true.

TQM, or better known as the Total Quality Management, is a practice followed by managers of an organization to be able to function effectively, and derive the highest level of efficiency within the scope of the organization. Today, TQM is among the most widely followed functions of effective management.

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Complete question

Ted wants to hire more inspection personnel to ensure that all products shipped are free of defects. What TQM core value would this action violate?

Multiple Choice

Workers are more valuable than managers

Prevention is better than rework

Better quality leads to long term success

A PDCA cycle should always be followed

however, accountants and financiers sometimes disagree about how to determine asset value and risk. the accounting view focuses on the historical asset value, or

Answers

book, market

The accounting view focuses on the historical value of assert or the book value of the asset, where as the finance view focuses on the market value.

Asset valuation involves figuring out the fair market or current worth of an asset utilizing comparable, option pricing models, discounted cash flow analysis, book values, or absolute valuation methodologies.

These assets can be investments in marketable securities like stocks, bonds, and options; physical assets like buildings and equipment; intangible assets like brands, patents, and trademarks; or tangible assets like buildings and equipment.

Based on their book values and replacement costs, a company's fixed assets sometimes referred to as capital assets, property, plant, and equipment can be valued easily.

Investors cannot, however, determine from the financial accounts the exact value of a company's brand and intellectual property. Due to the subjectivity and potential difficulty of measuring intangible assets, companies may overvalue goodwill in an acquis.

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However, accountants and financiers sometimes disagree about how to determine asset value and risk. the accounting view focuses on the historical asset value, or _____ value, while the finance view focuses on the asset's value as an ongoing concern, called the _____ value.

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Suppose Hopewell Corporation has the following results related to cash flows for 2018: Net Income of $8,000,000 Increase in Accounts Payable of $500,000 Increase in Accounts Receivable of $700,000 Depreciation of $1,300,000 Decrease in Inventory of $300,000 Other Adjustments from Operating Activities of -$900,000 Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands What is the Net Cash Flow from Operating Activities? Please specify your answer in the same units as the statement of cash flows. navigation tips

Answers

The quantity of cash increases as land is sold, while the amount drops when new equipment is bought.

Operating Activity Cash Flows. Depreciation expense is recorded as a positive number in this section since the corporation has already deducted it from the asset value. The quantity of cash recorded is falling due to both an increase in accounts receivable and a drop in accounts payable. Inventory reduction combined with a decrease in prepaid rent is recorded as a positive sum. Investing-Related Cash Flows. The quantity of cash increases as land is sold, while the amount drops when new equipment is bought. Amounts Received from Financing Activities. The amount of cash increases with the issuance of long-term notes payable and common stock. Cash is used to pay dividends and buy treasury stock, which reduces the amount.

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