income: (Loss ) At the division level before the ad ) At the investment level. ) At the division level after the add

Q: period cost shown in statement of financial position Ture or false

A: Period cost refers to the cost related to the passage of time. Since it is associated with the…

Q: The income statement is a change statement. Explain what is meant by this

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: What is the Total·assets·turnover ratio?

A: Ratio Analysis: The process of analyzing financial ratios and comparing its degree of performance…

Q: Describe how to categorise working capital into "components" and "period" categories explain

A: The distinction between fixed and variable working capital is critical, especially when obtaining…

Q: 3. How would you classify restructuring costs in a multi-step income statement?

A: Restructuring costs:   Restructuring costs is a onetime cost incurred and paid by the company, for…

Q: Explain the components of non operating income.

A: Non Operating Income is that part of an organisation's income that is obtained from activities not…

Q: What exactly is the analytic hierarchy process (AHP) and how can it be used to the process of making…

A: ANALYTIC HIERARCHY PROCESS: It is the method for managing and identifying, organizing the complex…

Q: Define each of the following terms: e. Excess capacity; lumpy assets; economies of scale

A: If the assets are lumpy and a firm makes a significant buy, the firm will have overabundance…

Q: What is the meaning of capital costs, how are they described, and how are they different from…

A: Capital costs are one-time expenses for the creation, improvement, or purchase of assets like…

Q: What does the Total-Assets-Turnover Ratio measure?

A: The asset turnover ratio computes the value of the benefits or income of an organization comparative…

Q: Give a breakdown of the sources of income and categories of costs for a financial organization.

A: Banking institutions are one of the key financial institution of the economy. They primarily receive…

Q: Define asset management ratios

A: Asset management ratio: It ascertains the estimation of the sales or revenues of an organization…

Q: What is “comprehensive income”? Its composition varies from company to company but may include which…

A: Comprehensive income: The total of net income and other comprehensive income (OCI) is referred to as…

Q: n computing for the comprehensive income, the revaluation surplus will be deducted from the net inco

A: Solution Concept Revaluation surplus The term revaluation surplus means when the fair value of the…

Q: Which items comprise operating current assets? Why is itreasonable to assume that they grow…

A: Operating current assets are the short-term assets utilized to promote a business's processes

Q: Using

A: The agency theory is said to be the theory of the management which help in the examination of the…

Q: 8. Which of the following is NOT a component of aggregate expenditure? a.Investment b.Consumption…

A: The objective of the question is to identify which among the given options is not a component of…

Q: What is the difference between income statement and statement of comprehensive income?

A: GAAP stands for “Generally Accepted Accounting Principles”. It provides the accounting rules and…

Q: What is the relationship between depreciation and net income?

A: Depreciation is the part of cost of a asset which is charged to income statement yearly as a expense…

Q: What is the difference between the single-step and multiplestep income statement formats?

A: Income statement: It can be defined as one of the company’s financial statements that shows all the…

Q: The transfer price between two internal divisions will represent O an expense, cost revenue, cost…

A: Revenue for the Selling Division -The transfer price serves as the revenue or sales amount for the…

Q: Explain the accounting for gain and loss ­contingencies.

A: Contingencies:   Contingency is a situation where the outcome becomes uncertain and is resolved in…

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: Define divisional cost of capital

A: A firm’s capital structure is the mix of debt and equity. The cost of procuring such debt and equity…

Q: Topic: Income Taxation Active incom

A: There are two types of income active and passive income.

Q: An investment is the use of money or capital for income or​ _______. expenses profit value present…

A: An investment is an item or an asset acquired with the goal of earning income or appreciation in the…

Q: The cost that is incurred in the process of generating the income will be called as

A: The cost that is incurred in the process of generating the income will be called as expense.

Q: The amount reported for comprehensive income   Select one: is the same as net income. is…

A: The objective of the question is to understand the relationship between comprehensive income and net…

Q: The purpose of a statement of retained earning is to ?

A: Statement of Retained earnings is prepared to show the details of changes occurred in equity over an…

Q: Which format of the Income Statement is appropriate for financial reporting? O Variable costing O…

A: The appropriate format for the Income Statement for financial reporting is typically the Absorption…

Q: The monetary value charged to customers for the performance of services sold is called a(n) O asset…

A: Performance of service is the completion of service as per specification, They earn revenue for the…

Q: How do gross profits, operating income, and net income differ

A: In finance when making or analyzing an income statement we look into different types of income or…

Q: What is the strategy based on the income statement?

A: Income Statement is one of the most important part of any Financial Statement of the company. First…

Q: What is net operating income approach, what are the assumptions of this approach. In what…

A: What is net operating income approach, what are the assumptions of this approach. In what conditions…

Cost of Capital

Shareholders and investors who invest into the capital of the firm desire to have a suitable return on their investment funding. The cost of capital reflects what shareholders expect. It is a discount rate for converting expected cash flow into present cash flow.

Capital Structure

Capital structure is the combination of debt and equity employed by an organization in order to take care of its operations. It is an important concept in corporate finance and is expressed in the form of a debt-equity ratio.

Weighted Average Cost of Capital

The Weighted Average Cost of Capital is a tool used for calculating the cost of capital for a firm wherein proportional weightage is assigned to each category of capital. It can also be defined as the average amount that a firm needs to pay its stakeholders and for its security to finance the assets. The most commonly used sources of capital include common stocks, bonds, long-term debts, etc. The increase in weighted average cost of capital is an indicator of a decrease in the valuation of a firm and an increase in its risk.