Explain the purpose of an income statement and how it reflects the firm s financial status. Include important points that an analyst would use in assessing the financial condition of the company. What is the underlying objective of consolidated financial statements?
1. The primary objective of the firm is: a. Shareholder wealth maximization b. Social responsibility c. Long run survival d. Profit maximization ANS: A OBJ: TYPE: Fact TOP: A Foundation Concept 2. The limitations of the profit maximization goal include: a. It lacks a time dimension (i....
The main advantage of maximizing stock price is that:①it takes into account risk,and usually the stock price responds more sensitively to risk;②considering the timeliness of cash flows,which avoids to pursue short-term profits;③stock price is an objective indicator that is easy to quantify....
《ACCA考试之财务管理 FINANCIAL MANAGEMENT》课件PPT 1 Financial Management and financialobjectives PaperF9FinancialManagement AccountingSchool 1 陈今池：《新编财经会计词典》中国财政经济出版社，1992。袁淳，杨松令主编：《英汉双解-财务辞典》English-ChineseFinancialDictionary中国时代经济出版社，2002 [美]约翰.道森...
the body of theory concerned with how individual firms combine quantities ofFACTOR INPUTSto produceOUTPUTSof goods and services and their pricing and output decisions. A basic assumption of the theory is that the objective of the firm isPROFIT MAXIMIZATION. The theory provides an explanation of why...
In a practical sense, the main objective of financial accounting is to accurately prepare an organization's financial accounts for a specific period, otherwise known as financial statements. The three primary financial statements are the income statement, the balance sheet and the statement of cash ...
Objective ToDefineFinanceTheValueofFinance IntroductiontothePlayers 1Copyright©2009PearsonEducation,Inc.PublishingasPrenticeHall Chapter1Contents •1.1DefiningFinance •1.2WhyStudyFinance •1.3FinancialDecisionsofHouseholds •1.4FinancialDecisionsofFirms •1.5FormsofBusinessOrganization •1.6...
sameobjective,acommercialorganizationmight prefertheoptionwiththelowestpresentvalueofcost. not-for-profitorganization,however,ratherthanjust consideringfinancialcostandfinancialbenefits,will oftenhaveregardtothesocialcostsandsocial benefitsofinvestment. Thecostofcapitalthat is applied to project cash flows by the...
aThe development of clusters of economic activity, from which might come welfare benefits, rather than vice versa 经济活动反之亦然群的发展,也许来自社会保障津贴,而不是 [translate] aLargely objective financial criteria used to measure the firm’s performance against previously established quantitative ...
assumptionthattheobjectiveofthefirmistomaximizethe valueofthefirmdefinedasthepresentvalueofcashflows CF t (1+r) -t whereCF t =cashflowattimetandristhediscountrate GlobalizationoftheWorldEconomy:RecentTrends Emergenceofglobalizedfinancialmarketsasa