Which of the following is not an objective of financial reporting? Multiple Choice 1. To provide information about the fair value of an entity’s economic resources.
2. To report financial performance from the perspective of cash inflows and outflows.
3. To provide indirect information about management’s performance in meeting its responsibilities for stewardship of the entity.Incorrect
4. To provide information that is useful to investors and creditors.

Answers

Answer 1
Answer:

Answer:

The answer is 3. To provide indirect information about management’s performance in meeting its responsibilities for stewardship of the entity.

Explanation:

Financial reporting mainly deals with providing reliable and accurate financial information to stakeholders, investors and related parties to ensure a smooth flow of the economic activities.

However, it's not a standard of how the management perform and govern the entity. There are seperate rules and laws to ensure the transparency and the performance of the management.

Answer 2
Answer:

Final answer:

The primary objective of financial reporting is to provide a clear and fair view of a company's financial position and performance. Reporting financial performance from the perspective of cash inflows and outflows is not inherently an objective of financial reporting. The correct option is 2.

Explanation:

The main objective of financial reporting is to provide users, such as investors and creditors, with a clear and fair view of an entity's financial performance and position.

Given this, the answer to the question, 'Which of the following is not an objective of financial reporting?' would be option 2: 'To report financial performance from the perspective of cash inflows and outflows.'

This statement is not inherently an objective of financial reporting as it focuses more on cash management. Instead, financial reporting typically focuses more holistically on the financial performance and position of the company, which may not always align directly with cash inflows and outflows. The correct option is 2.

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Money pooled from small investors and used to purchase government or corporate bonds

Answers

purchase government of course

Risk is an important concept affecting security prices and rates of return. Risk is the chance that some unfavorable event will occur, and there is a trade-off between risk and return. The higher an investment’s risk, the equivalentItem 1 the return required to induce investors to purchase the asset. This relationship between risk and return indicates that investors are risk ---- :investors dislike risk and require--------- rates of return as an inducement to buy riskier securities. A--------- represents the additional compensation investors require for bearing risk; it is the difference between the expected rate of return on a given risky asset and that on a less risky asset. An asset’s risk can be considered in two ways: On a stand-alone basis and in a portfolio context.

Answers

Answer: Higher, averse , higher, risk premium.

Explanation: According to the question "Risk is an important concept affecting security prices and rates of return. Risk is the chance that some unfavorable event will occur, and there is a trade-off between risk and return. The higher an investment's risk, the HIGHER the return required to induce investors to purchase the asset. This relationship between risk and return indicates that investors are risk AVERSE; investors dislike risk and require HIGHER rates of return as an inducement to buy. A RISK PREMIUM represents the additional compensation investors require for bearing risk; it is the difference between the expected rate of return on a given risky asset and that on a less risky asset. An asset's risk can be considered in two ways: On a stand-alone basis and in a portfolio context".

gomez corporation uses the allowance method to account for uncollectibles. on january 31, it wrote off an $1,600 account of a customer, c. green. on march 9, it receives a $1,100 payment from green. prepare the journal entry for january 31. prepare the journal entries for march 9; assume no additional money is expected from green.

Answers

The journal entries for Gomez Corporation for January 31 and March 9 are being prepared below. This would record the partial recovery of the previously written-off amount.

Journal Entries in the books of Gomez Corporation

                           (as on January 31)


For January 31, when Gomez Corporation writes off the $1,600 account of customer C. Green using the allowance method, the journal entry would be:

1. Debit Allowance for Doubtful Accounts: $1,600
2. Credit Accounts Receivable - C. Green: $1,600

Journal Entries in the books of Gomez Corporation

                              (as on March 9)

The journal entries for March 9, when Gomez Corporation receives a $1,100 payment from C. Green and no additional money is expected, are as follows:

1. Debit Cash: $1,100
2. Credit Allowance for Doubtful Accounts: $1,100

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A negative externality is 1. when a third party receives a benefit from an economic activity
2. when the buyer does not pay full price for a good or service
3. when the seller overcharges the buyer
4. when a third party is injured by an economic activity

Answers

Answer: The correct answer is "4. when a third party is injured by an economic activity".

Explanation: A negative externality is when a third party is injured by an economic activity.

Negative externality refers to all kinds of harmful effects on society, generated by production or consumption activities, which are not present in its costs. Negative externalities occur when the action taken in our activities as a company, individual or family causes harmful side effects to third parties. Such effects are not incorporated in all costs. Since the highlighted negative effects are not present in the price of production or of the profit when consuming.

A fee earned on account was journalized and posted in error as a debit to Fees Earned and a credit to Accounts Receivable. The correcting journal entry would include a__________-

Answers

Answer:

Step 1.

Dr. Account Receivables

Cr Fees Earned

Being correction of error of fees earned wrongly debited to fees earned account

Step 2.

Dr. Account Receivables

Cr Fees Earned

Being Fees Earned on account

Explanation:

The error must have had a double impact on the account. If an amount meant to be credited to revenue account (fees earned) was wrongly debited, then the net effect is twice the amount involved. It is basically removing two instead of adding two to the account which gives a shortfall of four.

Therefore the correction will be in 2 steps:

1. A reversal of the wrong entry

2. The Posting of the right entry

Therefore:

Step 1.

Dr. Account Receivables

Cr Fees Earned

Being correction of error of fees earned wrongly debited to fees earned account

Step 2.

Dr. Account Receivables

Cr Fees Earned

Being Fees Earned on account

Which crop finally ensured the long-term success of the Jamestown colony?

Answers

The crop that finally ensured the long-term success of the Jamestown colony was tobacco.

Which crop finally ensured the long-term success of the Jamestown colony?

Tobacco cultivation and export became a profitable venture for the colonists, providing a much-needed source of income and helping to sustain the colony economically.

The cultivation and export of tobacco proved to be a pivotal factor in the long-term success of the Jamestown colony. It provided a profitable economic foundation, established trade connections with Europe, and shaped the labor system of the colony.

The success of tobacco cultivation in Jamestown set the stage for the eventual growth and prosperity of the English colonies in North America.

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