Finance and Accounting 3 - Corporate
Financial Statement Analysis
ABC Corp has a debt ratio of 84%. What does this imply? - ANS-The employer sold maximum
of its property with borrowed cash.
ABC Corp's 2019 ROE dropped fifty percentage from 2018. If the motive become go back on
income, what issue of the DuPont framework has decreased? - ANS-profitability
ABC Corp's ROE has been reducing over the past 5 years. How can you operate financial
statements to discover the reason why? - ANS-Use the statements to find traits, but preserve in
mind there may be normally no longer a unmarried motive.
How does a retail keep commonly create assets? - ANS-by means of promoting inventory
If you are attempting to forecast your corporation's increase for the subsequent year, what have
to be your number one consideration? - ANS-the agency's recent overall performance
In a not unusual size profits assertion, how is the gross margin calculated? - ANS-general
revenues minus the fee of sales
In its best phrases, what does the accounting equation inform you? - ANS-how your business
enterprise received the belongings it has
On commonplace size balance sheets, Company A's stock is 8% and Company B's stock is
14%. What do simply these two percentages inform you? - ANS-Company A can do $100 of
income with less stock than Company B.
What can you use to examine groups in unique industries? - ANS-Return on Equity
When figuring out the average collection duration, how is money owed receivable turnover
calculated? - ANS-Net Sales / Average Accounts Receivable
Why are not unusual size monetary statements used? - ANS-to evaluate corporations of
different sizes
Why could you use a current ratio to decide a agency's financial health? - ANS-Current ratio is
the measure of a company's capability to pay its short-term liabilities.
Financial Statement Analysis
ABC Corp has a debt ratio of 84%. What does this imply? - ANS-The employer sold maximum
of its property with borrowed cash.
ABC Corp's 2019 ROE dropped fifty percentage from 2018. If the motive become go back on
income, what issue of the DuPont framework has decreased? - ANS-profitability
ABC Corp's ROE has been reducing over the past 5 years. How can you operate financial
statements to discover the reason why? - ANS-Use the statements to find traits, but preserve in
mind there may be normally no longer a unmarried motive.
How does a retail keep commonly create assets? - ANS-by means of promoting inventory
If you are attempting to forecast your corporation's increase for the subsequent year, what have
to be your number one consideration? - ANS-the agency's recent overall performance
In a not unusual size profits assertion, how is the gross margin calculated? - ANS-general
revenues minus the fee of sales
In its best phrases, what does the accounting equation inform you? - ANS-how your business
enterprise received the belongings it has
On commonplace size balance sheets, Company A's stock is 8% and Company B's stock is
14%. What do simply these two percentages inform you? - ANS-Company A can do $100 of
income with less stock than Company B.
What can you use to examine groups in unique industries? - ANS-Return on Equity
When figuring out the average collection duration, how is money owed receivable turnover
calculated? - ANS-Net Sales / Average Accounts Receivable
Why are not unusual size monetary statements used? - ANS-to evaluate corporations of
different sizes
Why could you use a current ratio to decide a agency's financial health? - ANS-Current ratio is
the measure of a company's capability to pay its short-term liabilities.
