When financial information is measured and reported in a similar manner across different companies in the same industry it is:
Multiple Choice
faithfully represented.
comparable.
neutral.
consistent.
The answer is comparable
When different companies in the industry adopt similar policies and reports information in a similar way, the statements becomes comparable
When financial information is measured and reported in a similar manner across different companies in the...
Two of the qualitative characteristics (I will call them concepts) of high-quality accounting information are comparability and consistency. Comparability means that different companies report the same account using similar standards. Consistency means the same company reports the same account from year to year using similar standards across years. Option 1. Please provide an example of these of comparability and consistency. Also please provide exceptions when you think it is appropriate to depart from these concepts. Option 2. If you prefer...
Comparability and Consistency. due 1202, 1.4 points (if outstanding; 1.2 points for acceptable work)- Two of the qualitative characteristics (I will call them concepts) of high-quality accounting information are comparability and consistency. Comparability means that different companies report the same account using similar standards. Consistency means the same company reports the same account from year to year using similar standards across years. Option 1. Please provide an example of these of comparability and consistency. Also please provide exceptions when you...
How can organizations ensure consistent messaging across all forms of promotion, when (especially in large companies) different people--and even different departments--are responsible for different promotion vehicles?
nternal controls are crucial to global companies because of all of the following risks except: Multiple Choice Possible misstatement of financial information. Possible fraud. Controls are significantly different across the globe. Additional costs of inefficient operations. Management's inability to certify the effectiveness of the controls.
Indicate the qualitative characteristic of financial information being described in each item below: (a) Financial statements should include all information necessary to portray the underlying transactions. (b) Financial information should make a difference in a user’s decision-making. (c) Financial information should not favour one user or stakeholder over another. (d) Financial information should reflect the economic substance of business events or transactions. (e) Financial information should help users assess the impact of past, present, or future events. (f) Financial information...
When performing financial statement ratio analysis, it may be difficult to compare some of the ratios of two companies in the same industry if their accounting policies are different in key areas, for example different inventory and cost of goods sold policies. TRUE OR FALSE
Price dispersion is measured as the distribution of prices for the same product/service across sellers at a given point in time. Lower dispersion means that prices across sellers at a point in time are more similar to each other, i.e., there is less variability in pricing. Price dispersion is thought to be a good measure of information efficiency in a market. For example, when search costs for consumers are low (and consumers can easily compare competitive offers), price dispersion is...
Insider trading occurs when Multiple Choice someone has information not available to the public which they use to profit from trading in stocks. corporate officers buy stock in their company. any stock transaction that violates the Federal Trade Commissions restrictions. lawyers, investment bankers, and others buy common stock in companies represented by their firms.
Presented below is financial information for two different companies. Compute the missing amounts. Windsor Company Sheridan Company Sales revenue 96,570 (d) Sales returns and allowances (a) 5,420 Net sales 81,960 94,350 Cost of goods sold 55,730 (e) Gross profit (b) 40,900 Operating expenses 15,070 21,380 Net income (c) 19,520
Two online magazine companies reported the following in their financial statements: Net income Total stockholders' equity Earnings per share Stock price when annual results reported BusinessWorld 2015 2014 $ 111,500 $108,904 602,186 527,814 3.50 3.49 55.15 51.79 Fun and Games 2015 2014 $ 92,920 $172,473 462,151 482,049 2.40 4.28 33.30 60.45 Required: 1-a. Compute the 2015 ROE for each company. (Round your answers to 1 decimal place.) ROE BusinessWorld Fun and Games 1-b. Which company appears to generate greater returns...