Questions from Managerial Accounting


Q: Calculate at least two ratios that measure profitability.

Calculate at least two ratios that measure profitability.

See Answer

Q: Calculate at least two ratios that help to analyze the stock as

Calculate at least two ratios that help to analyze the stock as an investment.

See Answer

Q: Describe why book value per share of common stock may not be

Describe why book value per share of common stock may not be useful for investment analysis.

See Answer

Q: How is the current ratio calculated? What is it used to

How is the current ratio calculated? What is it used to measure? How is it interpreted?

See Answer

Q: Assume a company has a current ratio of 2.0.

Assume a company has a current ratio of 2.0. List two examples of transactions that could cause the current ratio to increase. Also list two examples of transactions that could cause the current ratio...

See Answer

Q: Describe the set of circumstances that could result in net income increasing

Describe the set of circumstances that could result in net income increasing while return on investment (ROI) decreases.

See Answer

Q: Describe at least two reasons that a company’s ratios might not be

Describe at least two reasons that a company’s ratios might not be comparable over time.

See Answer

Q: Compare and contrast the current ratio and the quick ratio.

Compare and contrast the current ratio and the quick ratio.

See Answer

Q: Describe at least four financial conditions that may signal financial trouble.

Describe at least four financial conditions that may signal financial trouble.

See Answer

Q: Define residual income. How is it calculated? Describe the major

Define residual income. How is it calculated? Describe the major weakness of residual income.

See Answer