Questions from Managerial Accounting

Q: What is ratio analysis? Why is it useful?

What is ratio analysis? Why is it useful?

Q: What benchmarks are commonly used for interpreting ratios?

What benchmarks are commonly used for interpreting ratios?

Q: Into what three categories of performance are most financial ratios reported?

Into what three categories of performance are most financial ratios reported? To what in particular does each of these categories relate?

Q: Why are some analyses called horizontal and others called vertical?

Why are some analyses called horizontal and others called vertical?

Q: Slow Cellar’s current ratio increased from 1.2 to 1.

Slow Cellar’s current ratio increased from 1.2 to 1.5. What is one favorable interpretation of this change? What is one unfavorable interpretation of this change?

Q: Camp Rainbow offers overnight summer camp programs for children ages 10 to

Camp Rainbow offers overnight summer camp programs for children ages 10 to 14 every summer during June and July. Each camp session is one week and can accommodate up to 200 children. The camp is not c...

Q: From last year to this year, Colossal Company’s current ratio increased

From last year to this year, Colossal Company’s current ratio increased and its inventory turnover decreased. Does this imply a higher, or lower, risk of obsolete inventory?

Q: From last year to this year, Berry Barn reported that its

From last year to this year, Berry Barn reported that its Net Sales increased from $300,000 to $400,000 and its Gross Profit increased from $90,000 to $130,000. Was the Gross Profit increase caused...

Q: What is the primary difference between financial accounting and managerial accounting?

What is the primary difference between financial accounting and managerial accounting?

Q: Explain how the primary difference between financial and managerial accounting results in

Explain how the primary difference between financial and managerial accounting results in other differences between the two.