When should accountants consider alternative performance measure? Whenshould accountants consider alternativeperformance measures?a) Basic profit measures explain everythingb) Stock prices show perfect informationc) Standard ratios tell the complete storyd) Traditional financial metrics fail to capture businessvalue

Explanation of Alternative Performance Measures:These are metrics that go beyond traditional…

Answered: When should accountants consider…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter1: Role Of Accounting In Society

Section: Chapter Questions

Problem 2MC: Financial accounting information ________. A. should be incomplete in order to confuse competitors...

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can you please explain this and provide an example its for homework I am struggling
“A company can be profit rich but cash poor” critically evaluate this statement focusing on the various financial ratios that can guide you in coming to such a conclusion.
not use ai please
is(are)the reason(s) for profit maximization not a reasonable goal for firms. a. Profit concept ignores timing of the returns b. Profit concept ignores the cash flow available to stock holders c. Profit is risky and can be some times loss d. All the above
Which of the following statements is false regarding the abnormal earnings approach to valuation? Multiple Choice The method uses earnings and equity book value numbers as direct inputs in the valuation process. The method uses the cost of capital as a fundamental economic benchmark. This approach produces results that are generally equivalent to the free cash flow model. This approach is based on the notion that the value of a company is driven primarily by the level of earnings.
Answer the following question in essay. What do you understand by current ratio? What are it uses? What are its limitations? Ratio analysis is widely used as a tool of financial analysis, yet it suffers from various limitations. Explain. How can solvency of a firm be measured? What you understand by Liquidity ratios? Discuss their significance. Page 1 Module PSFM08 MANAGERIAL ACOUNTING WITH FINANCIAL ANALYSIS AND REPORTING Explain the importance of profitability ratio. How they are worked out?
60) Inadequacies of the existing system of financial ratio signify a need for a different approach to monitoring business performance. Of the following statements, which is NOT a shortcoming of financial ratio? a) financial measures are lagging indictors of business performance. b) Financial ratios have a short-term orientation and emphasize the cash flow rather than the processes that contribute to cash flow. c) Financial Ratio focus equally on the stockholder as on the customers, suppliers and employees. d) A and B e) A and B and C
81) Inadequacies of the existing system of financial ratios signify a need for a different approach to monitoring business performance. Of the following statements, which is NOT a shortcoming of financial ratios? a) financial measures are lagging indicators of business performance. b) financial ratios have a short-term orientation and emphasize the cash flow rather than the processes that contribute to cash flow. c) Financial ratios focus equally on the stockholders as on the customers, suppliers and employees. d) A and B e) A and B and C
‘Accounting ratios are only as good as the data on which they are based.’ Discuss. What does ‘ROCE’, EPS and P/E ratios and why are they important to a business entity. iii. What is Capital gearing and how might it be calculated What is the possible link between the following ratios: (a) profitability and efficiency; (b) profitability and liquidity; (c) profitability and investment,and (d) efficiency and liquidity.
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
Which of the following statements is correct? a. Any forecast of financial requirements involves determining how much money the firm will need and is obtained by adding together increases in assets and spontaneous liabilities and subtracting operating income. b. The percentage of sales method of forecasting financial needs requires only a forecast of the firm's balance sheet. Although a forecasted income statement helps clarify the need, it is not essential to the percentage of sales method. c. Because dividends are paid after taxes from retained earnings, dividends are not included in the percentage of sales method of forecasting. d. Financing feedbacks describe the fact that interest must be paid on the debt used to help finance AFN and dividends must be paid on the shares issued to raise the equity part of the AFN. These payments would lower the net income and retained earnings shown in the projected financial statements. e. All of the statements above are false.
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When should accountants consider alternative performance measures? a) Basic profit measures explain everything b) Stock prices show perfect information c) Standard ratios tell the complete story d) Traditional financial metrics fail to capture business value