The following is an outline ofcertain potential benefits aswell as costs associated withthe cross-border listings ofstocks:(i) - the company can expandits potential investor base(ii) - issues involving thedisclosure and listingrequirements(iii) - creates a secondarymarket for the company'sshares(iv) - liquidity(v) - volatility spillover from theoverseas markets(vi) - control of the companyby foreigners(vii) - enhances the visibility ofthe company's name and itsproducts in foreignmarketplacesWhich of the followingrepresent all the potentialCOSTS of the cross-borderlistings of stocks?O (i), (iii), (iv), and (vii)○ (ii). (v), and (vi)(ii), (iv). (vi), and (vii)(iv). (v), (vi), and (vii)(i), (ii), and (iii)

Cross-border listing refers to the process by which a company's shares are listed for trading on a…

Answered: The following is an outline of certain…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter6: Accounting Quality

Section: Chapter Questions

Problem 11QE

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Similar questions

Which of the following is NOT an acceptable basis on which to measure an expense? A cash outflow. O A pro rata measure. O An estimation. O All of these options are acceptable. O An invoice price. Which of the following is a likely explanation as to why preparers would choose to deliberately understate the reported profit of a listed entity? O To reduce investors' expectations of future earnings. O To decrease the entity's weighted average cost of capital. To reduce the entity's tax liability. O To satisfy the qualitative characteristic of faithful representation. O All of these are likely explanations why preparers would deliberately understate the reported profit.
Factors that influence business risk include except Group of answer choices A)liability uncertainty B)uncertainty about sales volume C)uncertainty about costs D)None of the above
The assumption that a business enterprise will not be sold or liquidated in the foreseeable future is known as the: Question 12 options: economic entity assumption. materiality. going concern assumption. fair value principle. Which of the following is not a category to measure financial statement elements? Question 13 options: Cash-flow measures. Current (market) value measures. Cost-based measures. Hybrid measures.
The assumption indicates that a company will not be sold or liquidated in the near future. а. economic entity b. materiality C. going concern O d. monetary unit
What is Market Value? A. Any cost that has not yet been charged to the expense B. The amount of money a business must currently spend to replace an essential asset C. Maintaining an account tied to a certain asset D. The value of a company according to the stock market
Which Accounting Principle is Applied for "Closing stock is valued at lower of cost or market price" (a) Matching Concept (b) Prudence Concept (c) Matching Concept (d) Money measurement concept
1. Which of the following pairs of financial statement analysis tool will be given more emphasis by a firm that is considering whether to grant trade credit or sell on account to a new client? Choices: Current and cash ratio Return on sales and return on asset Debt and debt-to-equity ratio Book value and price-to-earnings ratio 2. It is assumed that the Cost of equity and rate of return are both constant under Walter's Model of Dividend Relevance, if the cost of equity is higher than the rate of return, it is optimal that Choices: No dividend to be given to shareholders None of the choices is correct. The firm is indifferent as to distribute dividends or to reinvest the income All the earnings for the period shall be distributed to shareholders 3. Which of the following is correct with regards to cash discounts offering? Choices: These are granted because customer acquires high quantity of products and goods It is used lengthen the cash conversion cycle without putting pressure…
How should (a) signaling and (b) the clienteleeffect be taken into account by a firm as it considers its dividend decision? Do signaling and clientele effects make it easier or harder to determineif investors prefer high or low payout ratios? Dothese factors influence the desirability of a stabledistribution policy versus one that is flexible andthus varies with the company’s cash flows andinvestment opportunities?
Which of the following is true about earnings management? A. It works within the constraints of GAAP. B. It works outside the constraints of GAAP. C. It tries to improve stakeholders views of the companys financial position. D. Both B and C E. Both A and C
For the example below, list and describe the input(s) (observable or unobservable) and valuation technique(s) used. Determine the appropriate classification in the fair value hierarchy. Company A invested in the common stock of a private furniture manufacturer, Company Z. Quoted prices are not available for Company Z’s stock. Company Z’s fair value is measured as the present value of future cash flow. The measurement requires management assumptions such as discount rate, the amount and the timing of future cash flow.
Which one of the following statements about book value and market value is correct? Group of answer choices a. Both book value and market value are forward-looking. b. Both book value and market value account for all forms of assets and liabilities of a firm. c. The market value of equity should not differ much from the book value of equity. d. Decision-making should be based on market value instead of book value.
State whether the following statements are true or false. 4) Agency Problem creates when managers are acting on behalf of owners’ interest. 5) Increase in current liabilities and decrease in current asset represents inflow cash. 6) If an individual investor buys or sells a currently outstanding stock through a broker, this is a primary market transaction. 7) Activity ratios explain the firm ability to use assets efficiently.

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