Questions from General Finance

Q: What are the differences between GAAP and IFRS?

What are the differences between GAAP and IFRS?

Q: What are the limitations of financial statements?

What are the limitations of financial statements?

Q: Explain what determines a company’s return on equity.

Explain what determines a company’s return on equity.

Q: What is Economic Value Added? Why is it used?

What is Economic Value Added? Why is it used?

Q: Imagine that you were hired recently as a financial analyst for a

Imagine that you were hired recently as a financial analyst for a relatively new, highly leveraged ski manufacturer located in the foothills of Colorado’s Rocky Mountains. Your firm manufactures only...

Q: Where can we obtain industry norms?

Where can we obtain industry norms?

Q: Describe the “five-question approach” to using financial ratios

Describe the “five-question approach” to using financial ratios.

Q: What are the limitations of industry average ratios? Discuss briefly.

What are the limitations of industry average ratios? Discuss briefly.

Q: What is liquidity, and what is the rationale for its measurement

What is liquidity, and what is the rationale for its measurement?

Q: Distinguish between a firm’s operating return on assets and its operating profit

Distinguish between a firm’s operating return on assets and its operating profit margin.