Questions from Managerial Accounting


Q: What is the difference between return on investment and return on equity

What is the difference between return on investment and return on equity?

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Q: Which ratios are used to measure long-term debt-paying

Which ratios are used to measure long-term debt-paying ability? How is each calculated?

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Q: What are some limitations of the earnings per share figure?

What are some limitations of the earnings per share figure?

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Q: What is the purpose of the statement of cash flows?

What is the purpose of the statement of cash flows?

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Q: If Best Company sold office equipment that originally cost $7,

If Best Company sold office equipment that originally cost $7,500 and had $7,200 of accumulated depreciation at a $100 loss, what was the selling price for the office equipment?

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Q: Magnificent Modems Inc. acquired a subsidiary named Anywhere Inc. (

Magnificent Modems Inc. acquired a subsidiary named Anywhere Inc. (AI). AI manufactures a wireless modem that enables users to access the Internet through cell phones. The following Balance Sheet was...

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Q: In which section of the statement of cash flows would the following

In which section of the statement of cash flows would the following transactions be reported? (a) The amount of the change in the balance of accounts receivable. (b) Cash purchase of investment securi...

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Q: What is the difference between preparing the statement of cash flows using

What is the difference between preparing the statement of cash flows using the direct method and using the indirect method?

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Q: Which method (direct or indirect) of presenting the statement of

Which method (direct or indirect) of presenting the statement of cash flows is more intuitively logical? Why?

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Q: What is the major advantage of using the indirect method to present

What is the major advantage of using the indirect method to present the statement of cash flows?

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