GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The maximisation of profit is often considered as an implied objective of a firm
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The wealth of a firm is defined as the market price of the firm’s stock
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An option is a claim without any liability
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All of the above
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Detailed explanation-1: -Financial Management is a study of planning, designing, directing and managing the economic activities such as the utilization of capital and acquisition of the firm. To put it in other words, it is applying general management standards to the financial resources of the firm.
Detailed explanation-2: -Answer and Explanation: The correct answer is c) Both the income statement and the statement of cash flows show the result of a company’s operating activities. Operating activities are transactions that are relating to the operations of the company, or transactions that would affect net income during the period.
Detailed explanation-3: -Explanation: The balance sheet is also referred to as the statement of financial position or the statement of financial condition. It gives details about assets, their value, and the liabilities that a business owes to others at a particular point in time.