Option 'B' is correct
Accrual approach.
Accountants prefer Accrual method of accounting rather than using cash basis of accounting because under cash method only cash expenses and cash revenues are recorded. It ignores transactions that incurred during the period but cash flow will be received during the next accounting period. But Accountants prefer Accrual method of accounting because it considers transaction as and when it is incurred even when payment is received or made later.
Rather than using the cash method accountants prefer to calculate profitability using the: Select one: O...
1. Bankers tend to prefer companies to practice rather conservative accounting with regard to assets and liabilities because ______. a. they are more interested in profitability than solvency b. they are more interested in net income than liquidity c. they are more interested in solvency and liquidity than profitability d. they are usually the main borrowers of companies 2. "Some studies have found that accountants' financial reporting decisions are ______ between countries because of ______ in the cultural values of...
True or False: Companies prefer that their working capital is a positive amount rather than a negative amount. Select one: O True False
a. Under what circumstances would you (as an investor) prefer to receive cash dividends rather than stock dividends? If the company can reinvest its retained earnings at a higher ROI than I could earn on the money paid to me in dividends, I would prefer that the company pay a cash dividend. If I needed current income from my investment, I would want Cash dividends. b. Under what circumstances would you prefer stock dividends to cash dividends? If I needed...
Some movie stars prefer made-to-order clothing rather than ready made one. This is an important to marketing manager because it is an example of __________ a. bandwagon effect b. cross-price elasticity effect c. snob effect d. substitute effect
Which of these is the weakest reason to prefer using the Discounted Cash Flow Method over the Multiples Method to value firm A which operates in industry B? Group of answer choices a. There is no rush to arrive at an answer. b. You believe the other firms in industry B are generally valued by the market at less than their true worth. c. You think you can accurately project firm A's future cash flows. d. There are many public...
An organization may decide to continue to produce a good or service in-house rather than outsource: Select one: O a. to control the quality of customer service and to reduce risk. O b. to reduce risk. O c. to control the quality of customer service, to reduce risk and because of a lack of technical expertise in- house. d. to control the quality of customer service O O e. because of a lack of technical expertise in-house.
True power for an inductor is measured in VAR rather than watts Select one: O True O False The power factor is equal to one for purely reactive loads. Select one OTrue O False Energy dissipation occurs only in the resistive part of a circuit since ideal inductors and capacitors merely store and release energy Select one OTrue O False The unit of apparent power is the volt-ampere Select one True O False
Accountants divide the life of the business into arbitrary time periods of equal length: Select one: a. In order to prepare a balance sheet o b. In order to calculate comparable profit results c. In order to prepare an income statement O d. Because of the accounting entity assumption N
Which of these is the weakest reason to prefer using the Discounted Cash Flow Method over the Multiples Method to value firm A which operates in industry B? Group of answer choices There is no rush to arrive at an answer. You believe the other firms in industry B are generally valued by the market at less than their true worth. You think you can accurately project firm A's future cash flows. There are many public firms in industry B...
Per IFRS, a Bank Overdraft may be netted with Cash if: Select one: O a. The overdraft is part of normal cash management O b. The overdraft is greater than the total cash owned O c. Cash less than the overdraft amount is held at the same bank O d. The overdraft will be eliminated during the next accounting period