Question

In: Accounting

1. A large amount of ________ expenses will lead to a high amount of risk since...

1. A large amount of ________ expenses will lead to a high amount of risk since they will ________ with revenues

a) Variable; change

b) Variable; not change

c) Fixed; change

d) Fixed; not change

2. The gap between cash inflows and cash outflows will likely be most harmful to a firm that

a) Has a large amount of fixed costs

b) Has a large amount of variable costs

c) Has materials as its largest expense

d) Has labor as its largest expensive

3. is NOT one of the 6 activities essential to entrepreneurial financial management.

a) Financial forecasting

b) Setting financial goals

c) Hiring employees

d) All of the following are activities essential to entrepreneurial financial management

Expert Solution

1. Your required answer is option D i.e. A large amount of Fixed expenses will lead to a high amount of risk since they will Not Change with revenues.

Here is risk with fixed assets that if any point of time if revenue is very low in any year even than the fixed amount will be same i.e. unchanged

2. Your required answer is option A i.e. The gap between cash inflows and cash outflows will likely be most harmful to a firm that Has a large amount of fixed costs.

Because the cost of fixed assets is very high and cash outlow will be also high and therefore the gap between cash inflow and outflow will not represent a true and fair image.

3. Your required answer is option D i.e. All of the following are activities essential to entrepreneurial financial management

An enterpreneur should have skill of Financial forcasting, setting financial goal,hiring employees and many more.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

ekkarill92 answered 2 years ago

1. A large amount of _________ expenses will lead to a low amount of risk since...

1. A large amount of _________ expenses will lead to a low amount of risk since they will _____ with revenues a. variable; change b. variable; not change c. fixed; change d. fixed; not change 2. Forecasting cash inflows is a. important since there may be a time gap when a cash inflow from revenue occurs and when expenses must be paid. b. important since there may be a time gap in when revenue is earned and when cash inflow...

When there is a high risk that expenses are understated, which of the following assertions is...

When there is a high risk that expenses are understated, which of the following assertions is most likely to be affected? Occurrence. Accuracy. Completeness. Valuation and allocation. The completeness assertion would be violated if: the allowance for doubtful accounts was understated. unbilled shipments had occurred during the period. the balance of accounts payable was overstated. all of the above would violate the completeness assertion. ShoeWorld sells a large range of sporting shoe brands from different manufacturers, and a large amount...

3. The maximum amount of invetment risk someone with a high risk tolerance but less than...

3. The maximum amount of invetment risk someone with a high risk tolerance but less than one year in time horizon should take is a. an aggressive position. b. a moderately aggressive position. c. a moderate position. d. a conservative position. 5. A financial planner who is worried that interest rates will increase should a. increase the duration of client bond portfolios. b. decrease the yield earned on fixed-income investments. c. increase the average maturuity with bond portfolios. d. decrease...

Despite having a large amount of biodiversity, why is the Amazon Rainforest facing the risk of...

Despite having a large amount of biodiversity, why is the Amazon Rainforest facing the risk of desertification?

1. One of the major duties of managers is to control expenses. Since labor costs in...

1. One of the major duties of managers is to control expenses. Since labor costs in health care is often 60% or more of total operating costs, discuss management’s role in controlling labor costs, including the use of part-time staff, control of over-time, outsourcing and other methods.

High Risk Does substance abuse lead to violence? Discuss any relationship there may be between substance...

High Risk Does substance abuse lead to violence? Discuss any relationship there may be between substance abuse and violence. Does one form of substance abuse lend itself to violent propensities more than another type? Describe.

1. Assume that the actual amount of one of a company’s variable expenses was $45,198. The...

1. Assume that the actual amount of one of a company’s variable expenses was $45,198. The company’s planned level of activity was 19,000 machine-hours, and its actual level of activity was 18,475 machine-hours. The spending variance for this particular expense was $9,114 favorable. The cost formula per machine-hour for this expense is: $1.92. $1.96. $2.88. $2.94. 2. Assume a company is considering using available space to make 10,000 units of a component part that it has been buying from a...

Catastrophic medical expenses are large, infrequent and unpredictable. Risk aversion explains why people buy insurance which...

Catastrophic medical expenses are large, infrequent and unpredictable. Risk aversion explains why people buy insurance which covers such catastrophic events.( true or false) The primary funding source for the expenses of current Medicare beneficiaries is the fund current beneficiaries contributed to throughout their lifetime. True False

1) What type of risk is not rewarded by the stock market since it can be...

1) What type of risk is not rewarded by the stock market since it can be diversified away? Systematic risk Bete Standard deviation Unsystematic risk 2) Which of the following is NOTa step for valuing a risky asset? Determine the asset's expected cash flows. Choose a discount rate that reflects the asset's risk. Calculate the present value. Determine the asset's beta. 3) The additional return offered by an investment, relative to an alternative, because it is riskier than the alternative,...

1. Discuss disadvantages of having large amount of government debt. 2. (A) Calculate the amount of...

1. Discuss disadvantages of having large amount of government debt. 2. (A) Calculate the amount of money you will have in your account after 6 years if you put in $7,000 now at 5% of interest rate. Use compounding. (B) What is present value of $10,000 after 5 years at 6% of interest rate? Use compounding. (C) Say, you are an investor between stocks and bonds. In which one will you invest when interest rates go up? Explain.