(Corporate Finance) What do we mean when we refer to agency costs?

Q: if a firms expense equal or exceed it's revenue what actio might management take

A: Explanation is given below,

Q: What do we mean by "capital costs," how do we explain them, and how are they different from…

A: There are different types of cost namely capital cost and another one is operational cost.Capital…

Q: Using the Acme hardware case, What are the alternatives for accounting for advertising and how could…

A: Manipulation of income is defined as purposely manipulating financial data in the income statement…

Q: What are the different approaches to income measurement in accounting theory, and what are the…

A: Income measurement in accounting theory refers to the process of determining and quantifying the…

Q: Give examples of  finance/accounting activities that does not incur cost and doesn't sacrifice any…

A: ANSWER:- One example of a finance/accounting activity that doesn't incur cost and doesn't sacrifice…

Q: What is earnings management?

A: Earnings refer to the amount earned by the business during the financial year. It may vary from year…

Q: Why is it necessary to make a distinction between Capital and Revenue Receipts and Capital and…

A: Capital receipts: These receipts are income that is earned from the investment and financing…

Q: In general, what is the concept of earnings and profit designed to represent?

A: When addressing the bottom line of a company's income statement, the concept of earnings is most…

Q: How is finance related to other functional areas in a business organization (marketing, production,…

A: The question is based on the role of finance and its application in the business house. Finance is…

Q: How are organization expenses reported?

A: Expense: It can be defined as the cost of running a company's operations to generate or earn…

Q: Why would managers be willing to make decisions based on estimated revenues and expenses instead of…

A: The estimated revenues are the expected amount of revenues and estimated expenses are also the…

Q: What is the meaning of capital costs, how are they described, and how are they different from…

A: Capital costs are one-time expenses for the creation, improvement, or purchase of assets like…

Q: what are financial goals and why are they important

A: The funds and other resources available to a company or an individual are always finite. Therefore,…

Q: Explain the objective of Financial Reporting

A: Financial reporting is an accounting practice where the organization discloses the financial results…

Q: how does working capital management differ from capital budgeting and capital structure?

A: Working capital management is a business strategy that ensures a company's operations run smoothly…

Q: hy finance dep

A: In an organization a finance department deals with procuring as well as managing the finances of the…

Q: What is E&P and how is it different than a company's net income?

A: E&P stands for "Earnings and Profits" and is a tax concept used by the Internal Revenue Service…

Q: Cost of Money is influenced by different factors”. What are those? How the cost of money is…

A: The cost of money or cost of capital is the minimum return a project has to generate for being…

Q: What is financial analysis?

A: The question is based on the concept of financial decision making. Financial analysis are the set of…

Q: You buy a 20-year bond with a coupon rate of 9.2 % that has a yield to maturity of 10.2 %. (Assume a…

A: Present value is the current value of the bond calculated by discounting the future cash flows and…

Q: standard setters?

A: Earnings management for contracting causes would be an interest in standard setters because of the…

Q: how is financial management related to economics on the one hand and accounting on the other hand.

A: Financial Management: It refers to the planning, directing, organizing & controlling the…

Q: In accounting terms, what is the difference between profit and loss

A: Accounting is based on the principle of double-entry. It may be described as how a company records…

Q: How does General Systems Theory work in finance and production and how do the decisions affect each…

A: General System Theory Addressing issues like organizational behavior, strategic restructuring, and…

Q: Explain how managerial finance function relates to Economics.

A: Managerial finance is referred as the part of finance which considers the managerial application of…

Q: What is the revenue recognition principle, and how does it impact financial reporting?

A: The need for the revenue recognition principle arises because it ensures that revenue is recognized…

Q: what is the difference between finance and accounting?

A: Finance means the management of assets and liabilities of a business organisation to focus upon…

Q: How does earnings management affect earnings quality?

A: Earnings of a company is referred as net income or bottom line item of a company. It is a very…

Q: What are the two foundations of financialmanagement?

A: Financial management entails the planning, organization, direction, and control of the enterprise's…

Q: Income statements prepared under IFRS usually report an item titled finance costs. What do finance…

A: International Financial Reporting Standards: These are defined as the set of accounting rules and…

Q: In finance, how essential is accounting?

A: Accounting is recording of the transactions occurring in the company. Accounting is very essential…

Q: 4. How the following two constraints related to financial accounting theory affecting organization?…

A: Financial reporting means releasing the financial reports of the company to its shareholders and in…

Q: Why can we not invest net income? Explain with an example?

A: The net income is the net profit of the company earned during the period. The net income includes…

Q: Explain what is meant by the term earnings quality.

A: The term earnings refer to the amount of money the company had earned during a particular period of…

Q: Distinguish between operating income and net income?

A: The main purpose of carrying on business operation is earning profits or income. It is the incentive…