Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1) Management that wanted to increase financial leverage of its firm would:

i) Raise extra capital by selling common stock

ii) Use excess cash to buy favoured stock for treasury

iii) Raise extra capital by selling fixed interest rate long-term bonds

iv) Try to increase its ROI by increasing asset turnover

2) When firm has financial leverage:

i) ROI will be greater than ROE

ii) ROI will generally be less than it would be without leverage

iii) Risk is greater than if there is not any leverage

iv) Firm will always have higher ROE than it would without leverage

3) Knowledge about behaviour pattern of cost is significant to understanding effect on net income of change in sales volume as sales volume changes:

i) Net income will change proportionately

ii) Effect on net income will depend on the behaviour pattern of various costs

iii) Fixed costs will rise proportionately

iv) Variable costs will not change

4) Management accounting is:

i) Highly technical subject that people in personnel or engineering muts not be expected to understand

ii) Performed by individuals who rarely work with people in other functional areas of organization

iii) Principal activity involved in finding goals and objectives of entity

iv) Activity which gets involved with virtually all of other functional areas of the organization

5) When cost behaviour pattern has been identified as fixed at certain volume of activity:

i) Any change in volume will most likely cause cost to change

ii) It is suitable to express cost on per unit of activity basis

iii) Total cost will not change even if the volume of activity changes substantially

iv) Total cost may change if the volume of activity changes substantially

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916582

Have any Question? 


Related Questions in Accounting Basics

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference) "earnings-based valuation" please respond to the following: • Create an argument supporting that ...

Define pat positive accounting theorytheoretical definition

Define PAT (positive accounting theory). Theoretical Definition of PAT and, implication and describe the limitation with the contribution and its significance. Write about the agency theory (An individual action is drive ...

Audit report modificationsthe final paper will be based on

Audit Report Modifications The final paper will be based on Appendix 6C Illustrative Audit Case: Keystone Computers at pages 237-244 in your text. Write, in outline format but in complete sentences, a 6 to 10 page audit ...

Conduct a cost analysis of gas versus electric vehicle find

Conduct a cost analysis of gas versus electric vehicle. Find the break-even point assuming gasoline is $3.00/gallon with an average of 22 miles per gallon that costs $25,000. Compared to an electric vehicle for $35,000 t ...

Accounting discussionbulldiscuss the advantages of

Accounting Discussion • Discuss the advantages of understanding accounting as it relates to your current or future position. (Consider careers in management, sales, business operations, finance, and business ownership.)

Assignment identification of fiduciary fundsfollowing is a

Assignment: Identification of Fiduciary Funds Following is a list of fund names and descriptions from the comprehensive annual financial reports (CAFRs). Required: Indicate which of the following are fiduciary funds. If ...

To make sure you are up to date on the special guidelines

To make sure you are up to date on the special guidelines the GASB has declared, your manager asked you to research GASB Statement No. 56. He also asked you to show him, side by side, how government accounting journal en ...

Financial paperso the idea is to have the same lenght

Financial Paper So the idea is to have the same lenght, quality and structure. The only thing missing on this paper is a conclusion, that will have to be at least half a page. The company to be compare on the paper will ...

Assume that you recently graduated and have just reported

Assume that you recently graduated and have just reported to work as an investment advisor at the onof the firms on Wall Street. You have been presented and asked to review the following Income Statement and Balance Shee ...

1 a psychologist studied the number of puzzles subjects

1. A psychologist studied the number of puzzles subjects were able to solve in a five minute period while listening to soothing music. Let X be the number of puzzles completed successfully by a subject. X had the followi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro