Hagement ratios measure how effectively the firm uses its plant and equipment. Which of the following statements is CORRECT?

Q: Which of the following statements is true? Return on investment (ROI) equals margin multiplied by…

A: Return on Investment (ROI) is a measure which is used to check the ability of the company, in…

Q: What type of intangible assets are the Trade name, customer Relationship, the Non-Compete agreement,…

A: Types of Assets: Assets is of Two Types: Current Assets and Fixed Assets   1. Current Assets are…

Q: Compare current performance of firms to its past performance is called cross-sectional. Select one:…

A: The financial statements of the business are analyzed using various financial ratios.

Q: Explain the difference in the accounting treatment of the cost of developed technology and the cost…

A: Developed Technology relates to those projects that have reached technological feasibility.…

Q: Instruction: Choose the letter that corresponds to the correct answer for each question. 1. Indicate…

A: D. Terms of trade, management efficiency, and industry norms Explanation:Terms of trade, management…

Q: enchmarking can only be used to compare between firms of the same size and working in the same…

A: Benchmarking is an important concept because it help was to understand the composition with respect…

Q: The return on total assets evaluates management's use of resources, essentially evaluating the…

A: Ratio analysis means where the various ratio can be found out with different name and meaning and…

Q: Ratio analysis assists in identifying a company’s strengths. Select one: True False

A: Ratio analysis is used to study or examine the line items inside the company's financial records. It…

Q: vailable for measuring a firm’s performance. Also discuss the important points to be taken into…

A: The comparisons are made to know the efficiency and effectiveness of the performance of a firm. The…

Q: a. The market value of the comps should be available.   b. The valuation object should be compared…

A: Share valuation is the process of determining the value of the shares based on certain factors.…

Q: What are the three ratios related to a Firm's asset management?

A: Asset management or turnover ratios: The asset management ratios are also termed as the turnover…

Q: Which are the three ratios related to a Firm's asset management?

A: Asset management ratios depict the relationship of a firm’s assets to its sales revenue. Asset…

Q: Explain the situation that a company (in the extractive industry) expenses all exploration and…

A: An entity is required to consider when it has been deciding on its accounting policies for…

Q: Explain how to value companies using a comparable (multiples) approach. Give at least two examples…

A: Comparable approach method:- A  Comparable (multiple approach) method is used in the stocks or any…

Q: Define each of the following terms: e. Excess capacity; lumpy assets; economies of scale

A: If the assets are lumpy and a firm makes a significant buy, the firm will have overabundance…

Q: Acompany has identified the following operating divisions: Trailers, Saddles, Bridles, and Grooming…

A: Operating Segments—The Management ApproachThe management approach to determining segments is based…

Q: Discuss when a company in the extractive industries needs to start accounting for its restoration…

A: Answer : A company in the extractive industry start accounting for its restoration costs when there…

Q: “The traditional income statement format arranges the data in a way that allows management to more…

A: Income Statement - It is a financial statement that shows income and expenditure of the company for…

Q: What is the incentive of management in computing efficiency ratios?

A: Efficiency ratios examine a company's ability to use its assets and handle its commitments…

Q: How is the asset based valuation important in the business?

A: In case of mergers and acquisitions:: In the event that two companies are merging, or if a company…

Q: Gross margin and contribution margins are two important, yet separate measures companies can use to…

A: Gross margin and contribution margin are two financial metrics used to understand a company's…

Q: How long will an asset be useful to the company?

A:

Q: State important categories of ratios, what conclusion you draw about company’s health from these…

A: There are 4 important categories of ratios  1) Liquidity ratios : these ratios show the short…

Q: The residual income approach to measuring divisional performance measurement is closely related to…

A: Residual income approach is used to compute residual income which comes after deducting the equity…

Q: Which is the best definition of start-up costs? a. All activities associated with organizing a new…

A: Costs are that worth of money which is utilized to pay for the expenses. Costs are incurred to start…

Q: Which items comprise operating current assets? Why is itreasonable to assume that they grow…

A: Operating current assets are the short-term assets utilized to promote a business's processes

Q: Similar operating segments may be combined if the segments have similar economic characteristics.…

A: GAAP specifies that operating segments can be combines provided that these segments have the same…

Q: how the output of horizontal analysis and vertical analysis can be compared to industry averages…

A: /Even /investigation /is /used /in /business /report /examination /to /rely on recorded info, like…

Q: Which of the following statements is true about agency efficiency?   a.  The costs from vertical…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: True or False. 48. Operational efficiency is measured based on the company's ability to generate…

A: Explanation for Question 48 : Operational efficiency is measures the efficiency of profit earned as…

Q: pany that is seeking to increase return on investment should attempt to decrease: 1. sales…

A: ROI: It basically means the average return on an investment in a particular period in which the…

Q: Which of the following statements is NOT a benefit of return on investment (ROI) as a measure of the…

A: Investment- An investment is a type of asset created by an investor using his or her own money and…

Q: How do companies recognize revenue from a performanceobligation over time?

A: Revenue recognition: GAAP states that under specific conditions only revenue is recognized and…

Q: How can we Evaluate Business and Engineering Assets?

A: Evaluation of Business and engineering asset can be done with the help of the below analysis:…

Q: Describe some different types of ratios and how they are used to assess performance. Explain the…

A: Financial ratios are powerful tools used to assess a company's financial performance and health.…

Q: Show and contrast how return on investment and residual income are used to evaluate the performance…

A: ROI  (return on investment =  ( Net Profit / Cost of the investment) X  100    Residual income =…

Q: 1. Which of the following is an example of qualitative factors that can effect investment decisions?…

A: investment decision are taken considering the long term future of the business. it is taken after…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.