Explain how useful income based valuation in a business.

Q: Discuss the Cost- Volume- Profit assumptions and its importance to the business organization in…

A: Cost Volume Analysis is a process of study of the relation between the costs of the product, volume,…

Q: How are effective improvement of return on investment in Zara company

A: The acronym ROI stands for return on investment. It is defined as the return obtained from the…

Q: Often the most direct route to a business decision is an incremental analysis. What is meant by an…

A: Incremental analysis Incremental analysis is a technique used by business for better decision…

Q: The Statement of Financial Position and the Statement of Comprehensive Income are critical to a…

A: Introduction: The statement of comprehensive income is described as the statement that includes…

Q: How do companies add value, and what arethe dimensions of performance that customersare expecting of…

A: Step 1: The companies may add through the following things: Research and development, Proper…

Q: What is profit, how is it earned? Explain its effect on businesses.

A: The income statement is prepared to find net income or losses incurred during the period. This is a…

Q: Which statement below best describes a profit center?a. The authority to make decisions affecting…

A: Answer c. The authority to make decisions over the most significant costs of operations, including…

Q: How is finance related to other functional areas in a business organization (marketing, production,…

A: The question is based on the role of finance and its application in the business house. Finance is…

Q: 1. Besides earning a profit, what other objectives might a business have? How can Accounting play an…

A: Accounting: It can be defined as a process that helps companies to maintain their large numbers of…

Q: Which financial ratio under the categories of profitability, asset utilization, liquidity, and debt…

A: Financial ratio can be defined as the accounting ratio which helps the business in evaluating the…

Q: Is the value chain in a managerial accounting a tool that primarily assists in the valuation of…

A:

Q: business analytics

A: Business analytics can be defined as the breakdown of past information so that future decisions can…

Q: how to differentiate short-term decisions from long-term decisions of a business and the changes in…

A: Companies' decisions may have both short- and long-term consequences, or both in certain cases.…

Q: What are the two ways companies can present comprehensive income?

A: Comprehensive income:   Comprehensive income represents the amount of net income plus other…

Q: Analysis of firm profitability – indicators, their meanings and relation to each other, methodical…

A: The income statement is a financial statement that shows the income and expenses of a company. It…

Q: The resources of value owned by a business are called _____________. Group of answer choices…

A: Business means the activity or occupation that is done to earn the revenues.

Q: What is meant by purchase return and sales return in accounting?

A: Purchase return:A purchase return is a transaction that occurs when the buyer of the goods (for…

Q: e why it might be used to value a business.

A: Business valuation is a process for determining the value of the business. It is very important to…

Q: How investment decisions and financing decisions are vital functions of business activities

A: Business activities refer to the activities that are performed with a purpose to generate revenue.…

Q: How would you describe the accounting profit?

A: The answer is about the accounting profit:

Q: What is the importance of business valuation in the business?

A: Valuations are pivotal when it comes to achieving the objectives and understanding the value of the…

Q: Compute profit margin and describe its use in analyzing company performance.

A: Profit margin indicates how many cents of profit generated for each dollar of sale. It measures the…

Q: Explain the effect of operating profitably on the balance sheet of a business entity.

A:

Q: What criteria determine whether a company can recognize revenue over time?

A: Revenue is recognized over time if one of the following conditions is met: The customer…

Q: Discuss and give reasons as to why a business would want to use non-financial performance measures…

A: Non Financial Measures: Non Financial measures are the measures which cannot be expressed in…

Q: What advice would you give those who want to invest in this company? (recommendations)  (based on…

A: Before investing in any companies’ securities, performance and growth is evaluated by considering…

Q: How do companies recognize revenue from a performanceobligation over time?

A: Revenue recognition: GAAP states that under specific conditions only revenue is recognized and…

Q: is the approach favored by most accountants in value measuring and financial reporting. Select one:…

A: Fair value accounting: It is the concept of measuring the value of assets and liabilities at the…

Q: Give an example business and explain how you will apply methods/ approach below for the success of…

A: Business is the activities which are carried out by the company or in other words, it is the…

Q: What is the dominant form of business organization, in terms of the ownership of productive…

A: Corporation: The form of business entity ,which is incorporated by state law into a separate legal…

Q: What is cost principle and give example of business situation of it

A: The cost principle is an accounting principle that requires assets, liabilities, and equity…

Q: Recognize and measure income by understanding the essential ideas.

A: This question deals about Understanding the fundamental concepts will help you recognize and…

Q: How can you show how efficiency ratios can be used to determine the best way to conduct the…

A: Lets understand the basics. Ratios are calculated by the management to compare the company's current…

Q: Justify managers' use of accounting rules in managing the company's profits.

A: To satisfy financial expectations and maintain a healthy stock price, managers may be pressured to…

Q: Explain the difference between NOPAT and net income. Which is a better measure of the performance of…

A: The net operating profits after taxes (NOPAT) is the operating profits after taxes. It includes all…

Q: What are the similarities between the income, market, and asset approaches to business valuation?

A: Business valuation is the measure of the economic value of a company for the benefit of the owners.…

Q: Which of the following gives the basic factors of business operations of which their…

A: Cost volume profit relationship in the business says that there is a relationship exists between…