Topic 4 DQ 2

1. Name and explain three tricks that management can play to manage earnings. Explain how using financial ratios can help spot these tricks. 2. Why is it important to analyze profitability, specifically focusing on return on investment? Invoke the breakdown of ROI in thinking about your response.

TRUE OR FALSE: Read each sentence carefully and determine whether the statement True or False. Write your answers in the space provided before the number. 1. Financial statement analysis uses computational and analytical techniques to evaluate the company's risks, performance, financial health, and future prospects with the objective of making economic decisions. 2. Return on asset is an operational efficiency ratio. 3. Profitability ratios measure the ability of the company's assets to generate sales. 4. Gross profit margin provides an indication of the company's average pricing policy 5. Given equal gross profit margin, the company with the lower operating income margin has higher operating expenses as a percentage of sales and has leaner operations. Written Works Below are the comparative Statement of Comprehensive Income & Statement of Financial Position of Ellane Company & Lanie Company: Statement of Comprehensive Income Ellane Company 2013 Melanie Company 2014 2013 2014 Net Sales…

An investment group is looking to invest some money into a company. Where should the investment group look for relevant information about the company's performance?

Indicate whether each of the following statements is true or false. 1.   When designing an accounting system, you need to think about the needs and knowledge of both the top managers and various other users.                                                              TrueFalse 2.   When the environment changes as a result of technological advances, increased competition, or government regulation, an accounting system does not have to be sufficiently flexible to meet the changes in order to save money.                                                              TrueFalse 3.   In developing an accounting system, cost is relevant. The benefits obtained from the information disseminated must outweigh the cost of providing it.                                                              TrueFalse

Kindly asisst with below questions so i can get better guide on how to answers this questions. 1. Construct an example of a sunk cost for business decision making. 2. Briefly discuss why you think financial reports for investors and managerial reports for managers may or may not differ in their treatment of sunk costs.

Which of the following is true about earnings management? Group of answer choices A. It works outside the constraints of GAAP B. It works outside the constraints of GAAP and t tries to improve stakeholder’s views of the company’s financial position. C. It tries to improve stakeholder’s views of the company’s financial position. D. It works within the constraints of GAAP and it tries to improve stakeholder’s views of the company’s financial position.

How would non-financial performance indicators help to improve the performance of the company?  Explain in detail.

What is the accounting equation and discuss how it impacts on the operations of a business?                                                                                                                                                       2. Why is liquidity critical for a business and how might this affect decision making?                                   3. Why is investment appraisal important to a business? Use examples to support your reasons.                        4. What is meant by relevant costs and critically explain their role in decision making.                                             5.  Discuss the benefits of the information contained in the Income Statement/Profit and Loss Account.

Financial managers shouldconsider this when.improving thefinancials of the firm  A. that the overall goal is the maximization of the market value of the equity through improved income and cashflows.B. that cost minimization is the primary concern of the firm.C. that exposing the firm to the most risk for the most return should be priority.D. that the personal goals of customer and employees are above the goals of the shareholders.

Discuss and give reasons as to why a business would want to use non-financial performance measures in addition to financial performance measures.

What is earnings management? Illustrate your answer with examples of Balance Sheet items that managers can use to increase earnings.

Indicate whether each of the following statements is true or false. 1. When designing an accounting system, we need to think about the needs and knowledge of both the top managers and various other users. 2. When the environment changes as a result of technological advances, increased competition, or government regulation, an accounting system does not have to be sufficiently flexible to meet the changes in order to save money. In developing an accounting system, cost is relevant. The benefits obtained from the information disseminated must outweigh the cost of providing it. 3. >

Earnings management is Select one: a. the process of profit maximization. b. the process of managing a business. c. manipulating income to meet a targeted earnings level. d. always fraudulent.

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What are the ethical issues that Dunlap's management team mat have created by adopting a short run focus on financial performance for Sunbeam? What lessons could be learned from the outcome?

What is the recommendations to Amazon on how to improve its financial performancefor the future.What is the decision on whether to invest or not in this company with supportinginformation based on the financial analysis completed.

can you please explain this and provide an example its for homework I am struggling

_____ are more relevant as they reflect today's values whereas the balance sheet reflects historical costs as adjusted by various accounting methods. To determine the current value of a firm, and its worth to the shareholders, financial managers must monitor _____.