How to interpret Priceline's method of reporting total bookings as revenue versus their agency fee. Would a higher reported revenue incline it to be more favorable towards investing? Or, would it be a moot point since the bottom line shows the company losing $102 million?
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- What type of question is finding the detail to more clearly understand why net income is decreasing when revenues are increasing? Multiple Choice Whet happened? What is happening Why did it happen? What ere the root couses of past results? WIlI heppen in the fuure? What is the probebility something will heppen? is t forecastable? Whet should we do based on what we expect will happen? What should we do based on what we expect wil heppen? How do we optimize our performance based on potential consreinnsComment on the following statements with suitable example: i. The ratio return on assets has net income in the numerator and total assets in the denominator. Explain how each part of the ratio could cause return on assets to fall. ii. Explain how return on assets could decline, given an increase in net profit margin. iii. If quoted market prices are not available, a personal financial statement cannot be prepared. Comment.The higher the anticipated return on net operating assets (RNOA) relative to the anticipated growth in net operating assets, the higher will be the unlevered price-to-book ratio. Is this correct? Kindly answer the question with introduction and conclusion based on the concept of the question. Explain the answer properly considering the accounting aspect of it.
- What type of question is finding the detail to more clearly understand why net income is decreasing when revenues are increasing? Multiple Choice What happened? What is happening? Why did it happen? What are the root causes of past results? Will it happen in the future? What is the probability something will happen? Is it forecastable? What should we do based on what we expect will happen? What should we do based on what we expect will happen? How do we optimize our performance based on potential constraints?1. Which of the following pairs of financial statement analysis tool will be given more emphasis by a firm that is considering whether to grant trade credit or sell on account to a new client? Choices: Current and cash ratio Return on sales and return on asset Debt and debt-to-equity ratio Book value and price-to-earnings ratio 2. It is assumed that the Cost of equity and rate of return are both constant under Walter's Model of Dividend Relevance, if the cost of equity is higher than the rate of return, it is optimal that Choices: No dividend to be given to shareholders None of the choices is correct. The firm is indifferent as to distribute dividends or to reinvest the income All the earnings for the period shall be distributed to shareholders 3. Which of the following is correct with regards to cash discounts offering? Choices: These are granted because customer acquires high quantity of products and goods It is used lengthen the cash conversion cycle without putting pressure…Which of the following is not an advantage of the average rate of return method? a.includes the amount of income earned over the entire life of the proposal b.takes into consideration the time value of money c.emphasizes accounting income d.easy to use
- Which of the following does not assign a value to a business opportunity using time-value measurement tools? Group of answer choices A. internal rate of return (IRR) method B. net present value (NPV) C. discounted cash flow model D. payback period methodWhich one of the following is an advantage of LIFO? a. In periods of rising prices, less income taxes are paid b. In periods of rising prices, more holding gains are reported in net income c. Record keeping and financial statement preparation are easier d. Conservative income statement and balance sheet disclousures result from falling priceswhat do the final numbers for each of these ratios mean i.e solvency ratio 0.0322 - is this good? are they in profit, what can they do to improve,
- Which of the following decision criteria is the easiest to use and very popular among investors? O Payback period. O Internal rate of return. O Average accounting return. Net present value. O Discounted return on investment.A firm has decided to switch from FIFO to LIFO. Ceteris paribus (all things being equal), what impact will the change in accounting have on the following variables? Assume an inflationary environment. Net profit will: OA increase OB decrease OC not change OD. cannot determineAn investor wants to determine if his investment in Bulldogs Inc. gives him a good return. Which of the following is the most appropriate to use? a. Times interest earned ratio b. Dividend yield c. Total asset turnover d. Operating profit margin