which of the statements is most correct course hero finance

What is the most important financial statement?

The key points favoring each of these financial statements as being the most important are: 1 Income statement. The most important financial statement for the majority of users is likely to be the income statement, since it reveals the ability of a business to generate a ... 2 Balance sheet. ... 3 Statement of cash flows. ...

Which statement of cash flows is the most important?

In that case, the best selection is the income statement and balance sheet, since the statement of cash flows can be constructed from these two documents. Yet another variation on the topic is to infer which statement is the most important, based on the perspective of the user.

Why is the balance sheet ranked third on the financial statements?

The balance sheet is likely to be ranked third by many users, since it does not reveal the results of operations, and some of the numbers listed in it may be based on historical costs, which renders the report less informative.

What are the key components of the financial statements?

The key components of the financial statements are the income statement, balance sheet, and statement of cash flows. These statements are designed to be taken as a whole, to present a complete picture of the financial condition and results of a business.

What type of financial institution has more in common with hedge funds?

c. Hedge funds have more in common with investment banks than with any other type of financial institution.

Which type of business has a tax advantage over many corporations?

d. Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones.

How long is a bond A and B?

Bonds A and B are 15-year, $1,000 face value bonds. Bond A has a 7% annual coupon, while Bond B has a 9% annual coupon. Both bonds have a yield to maturity of 8%, which is expected to remain constant for the next 15 years.

How many shares does Johnson and Johnson issue?

b. Johnson & Johnson issues 2,000,000 shares of new stock and sells them to the public through an investment banker.

Do shareholders pay higher taxes than owners of an otherwise identical proprietorship?

e. Shareholders in a regular corporation (not an S corporation) pay higher taxes than owners of an otherwise identical proprietorship.

Is it more expensive to form a corporation or a proprietorship?

a. It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required.

Does the NYSE exist?

c. The NYSE does not exist as a physical location; rather, it represents a loose collection of dealers who trade stocks electronically.

Which of the following statements about finance, accounting, and financial management is most correct?

Which of the following statements about finance, accounting, and financial management is most correct?#N#a. Accounting is of no value in decision making.#N#b. Accounting provides the theory and concepts necessary to help managers make better decisions.#N#c. Financial management involves the measurement, in financial terms, of operational events that affect the resources and financing of an organization.#N#d. The primary role of finance is to plan for, acquire, and use resources to maximize the efficiency (and value) of the enterprise.#N#e. Financial management is of no value in decision making.

What is the primary role of finance?

d. The primary role of finance is to plan for, acquire, and use resources to maximize the efficiency (and value) of the enterprise.

What is the goal of certificate of need regulation?

b. The goal of certificate of need (CON) regulation is to ensure that there are a sufficient number of clinical workers at each hospital and nursing home.

What is financial management?

c. Financial management involves the measurement, in financial terms, of operational events that affect the resources and financing of an organization.

Who is best suited to treat chronic illnesses?

e. Patients with chronic illnesses are best treated by a single case manager regardless of the provider setting.

Who does the CFO report to?

b. The CFO typically reports directly to the chief executive officer (CEO).

Is accounting a value?

a. Accounting is of no value in decision making.

What are financial statements prepared for?

Financial statements are prepared for a range of different business entities. Identify the different entities financial statements can be prepared for. View Answer. Describe the three different forms of business organizations (proprietorships, partnerships, and corporations).

What is the most important decision an enterprise makes?

CONCEPT REVIEW: Choosing the form of business to create is one of the most important decisions an enterprise makes. The extent of liability and control the owner will have depends on the form of t...

What is the easiest form of business organization to start and stop?

The easiest form of business organization to start and stop is the O limited liability company. O sole proprietorship. O corporation. O partnership.

Why is it less expensive to form a corporation than a proprietorship?

It is generally less expensive to form a corporation than a proprietorship because with a proprietorship, extensive legal documents are required. b.... View Answer. The small business owner is often focused on stability and profitability while the entrepreneur is focused on growth and greater presence in the market.

Is e-business different from brick and mortar?

Building a successful e-business is no different than building a successful brick-and-mortar business, and that requires a well-thought-out strategy. a. True b. False