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Q: Financial accounting is concerned with how and why profits arise. Select one: True False
A:
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True or False.
1. Finance is the allocation of limited resources to the unlimited needs of business.
2. Business is purely profit-oriented.
3.
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Solved in 2 steps
- The objectives of financial management are Select one: O a. None of the options O b. Profit maximization and wealth maximization O c. Wealth maximization O d. Maximize profits and reduce the employees O e. Profit maximizationWhy is profit maximization seen as an inadequate description of the primary goal that most businesses strive for?Why is the profit maximization supposed not the most important goal of the company?
- Explain how a company can be “profit rich, yet cash poor.”Examine the key reasons why a business may not want to hold too much or too little working capital. Provide examples that illustrate the consequences of either situation. Explain alternative ways a business can use free cash flow. Provide examples.Profit maximization pupose cannot be an ideal basis for making business decision because of _________ a. Focus only on Accounting Profits b. Failure to consider risk c. Lack of time dimension d. All of the above
- Profit maximization objective helps to: a. Increase the liquidity position of the business b. Reduce the risk of the business c. Reduce the investments of the business d. Increase the reserve of the businessThe primary goal of financial management is Select one: a. Increasing the owners wealth b. Reducing risk c. None of these d. Increasing profit4. Since NFPOs do not have as an objective making a profit for their own-ers, why should they be concerned about the financial aspects of theiroperations?
- Which statement is true about credits? Credits always increase the net worth of a company. Credits always indicate a detriment to the company. Credits always indicate a benefit to the company. None of the above statements are true.1 Earnings management is ______________ Select one: a. always fraudulent. b. the process of profit maximization. c. manipulating income to meet a targeted earnings level. d. the process of managing a business.Indicate whether the following statements are (True) or (False) and correct the false statements Profit maximization is the main goal of a business organization. The net accounting profit is the difference between the cash inflows and cash outflows of a given project. Financial markets are intermediaries that channel the savings of individual, businesses, and governments into loans or investments.