Tutor please provide answer of this question Why does capital adequacy determineaccounting method selection?(a) Standard methods work for all situations(b) Methods remain constant regardless ofresources(c) Available financial resources influencereporting choices(d) Capital levels never affect accounting

Explanation of Capital Adequacy:Capital adequacy refers to a company's available financial resources…

Answered: Why does capital adequacy determine…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3MC: The third step for making a capital investment decision is to establish baseline criteria for...

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Which of the following statements regarding economic capital and economic income is incorrect? (i) Economic income measurements are typically more subjective than measurements of accounting income based on historical cost (ii) Economic capital is a forward-looking concept, which requires making ex-ante estimations (iii) The measurement of economic income for a given accounting period is typically different from the accounting income based on historical cost (iv) The computation of economic capital requires present-value calculations (v) Economic income can be defined as the maximum consumption possible without reducing the value of capital (vi) The measurement of economic capital typically does not include unrealised cash flows a. (i) b. (ii) c. (iii) d. (iv) e. (v) f. (vi)
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Explain the meaning of the terms working capital and working capital management in a succinct manner. Explain the link between current asset policy and liquidity, profit, and risk as well as any other relevant information. Which policy, in your opinion, is the best?
Why is "Projecting Growth Beyond What the Capital Being Valued Will Support" considered a common error in applying the income approach?
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Why isn’t accounting net income used in the net present value method of making capitalbudgeting decisions?
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General Accounting MCQ
Ignoring differences in the useful lives of investments when evaluating capital expenditure alternatives A B с D cannot be addressed by adjusting cash flow assumptions of the proposals can distort present value analysis and adversely affect decisions will never distort present value analysis or adversely affect decisions reduces complexity and improves decision making
Why do we use the overall cost of capital for investment decisions even when only one source of capital will be used (e.g., debt)?

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Why does capital adequacy determine accounting method selection? (a) Standard methods work for all situations (b) Methods remain constant regardless of resources (c) Available financial resources influence reporting choices (d) Capital levels never affect accounting