which of the following is a universally accepted measure of profitability?, check these out | Which of the following accounts is part of the working capital?

Which of the following accounts is part of the working capital?

Working capital is calculated by subtracting current liabilities from current assets, as listed on the company’s balance sheet. Current assets include cash, accounts receivable and inventory. Current liabilities include accounts payable, taxes, wages and interest owed.

Is a measure of the relative expensiveness of a firm’s common stock?

The price/earnings ratio: – is a measure of the relative expensiveness of a firm’s common stock. – is calculated by dividing the earnings multiple by net income. – does not usually change by more than 1.0 (e.g. 8.2 to 9.2) during the year.

Which of the following accounting methods accomplishes much of the matching of revenues and expenses?

consistency. Which of the following accounting methods accomplishes much of the matching of revenues and expenses? Accrual accounting.

What is return on equity quizlet?

Return on equity. Return on equity measures a company’s profit as a percentage of the combined total worth of all ownership interests in the company. ROE, is a company’s net income divided by its average stockholder’s equity. ROE is more than a measure of profit; it’s a measure of efficiency.

Which one of the following is working capital decision?

The amount of cash and liquid assets a company owns is called working capital.

What are the sources of working capital finance?

Working Capital Financing: What Are the Different Sources?
Overdraft Agreement: Accounts Receivable Financing: Customer Advances: Selling Goods on Instalment: Long-term Loan from any Bank: Retain Profits: Issue Debentures and Equities:

What is BV per share?

Book value per share (BVPS) is the ratio of equity available to common shareholders divided by the number of outstanding shares. This figure represents the minimum value of a company’s equity and measures the book value of a firm on a per-share basis.

Which of the following is a characteristic of a preferred stock quizlet?

Preferred stock is similar to common stock in that it has a fixed maturity date, if the firm fails to pay dividends, it does not bring on bankruptcy, and dividends are fixed in amount.

Which valuation method is most closely associated with the process of determining the intrinsic value of a stock multiple choice question?

The discounted cash flow (DCF) model is a commonly used valuation method to determine a company’s intrinsic value. The DCF model uses a company’s free cash flow and the weighted average cost of capital (WACC). WACC accounts for the time value of money and then discounts all its future cash flow back to the present day.

Which of the following accounting methods is best for matching revenues and expenses multiple choice question?

Key Takeaways: Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction occurs versus when payment is received or made. The method follows the matching principle, which says that revenues and expenses should be recognized in the same period.

What is matching in accounting concept?

The matching principle requires that revenues and any related expenses be recognized together in the same reporting period. Thus, if there is a cause-and-effect relationship between revenue and certain expenses, then record them at the same time.

Which of the following is used to determine how the sales revenue of a company has changed from one year to the next?

Horizontal analysis provides a year-to-year comparison of a company’s performance in different periods. A vertical analysis would be used if an analyst wants to see how gross profit of a company has changed from one year to the next.

Which of the following is a measure of profitability quizlet?

Return on equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders’ equity. Net operating assets (NOA) are a business’s operating assets minus its operating liabilities.

What does earning per share measure?

Earnings per share (EPS) is a figure describing a public company’s profit per outstanding share of stock, calculated on a quarterly or annual basis. EPS is arrived at by taking a company’s quarterly or annual net income and dividing by the number of its shares of stock outstanding.

How is the return on investment measure of performance calculated?

Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment.

Which one of the following is a capital budgeting decision?

The correct answer is b. deciding whether or not to open a new store.

What is an example of a working capital management decision?

Working capital refers to the amount which the company requires with the purpose of financing the day to day operation and example of which includes the working capital of $100,000 with a manufacturer which is calculated by subtracting current liabilities of $200,000 from the current assets of $300,000.

Which one of the following is included in working capital management?

Working capital management commonly involves monitoring cash flow, current assets, and current liabilities through ratio analysis of the key elements of working capital, including the working capital ratio, collection ratio, and inventory turnover ratio.