Financial Accounting: Tools for Business Decision Making, 8th Edition
Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
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Chapter 13, Problem 9Q

a)

To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the capabilities, profitability, and overall performance of a company.

To determine:  The characteristics of a company

Given info: Belief on financial statement analysis

b)

To determine

To find:  The interest of few parties in same characteristics of a company

Given info: Interest towards characteristics of a company

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Which of the following financial statements would be most useful if an analyst wants to know the profitability of a​ company?   A. balance sheet   B. statement of cash flows   C. statement of retained earnings   D. income statement
The return on total assets is the focus of analysts, creditors, and other users of financial statements. 1. How is the return on total assets computed? 2. What does this important ratio reflect? 3. Return on total assets can be separated into two important components. Write the formula to separate the return on total assets into its two basic components. 4. Explain how these components of the return on total assets are helpful to financial statement users for business decisions.
Question 1 a.) Should financial Accounting be the same everywhere? Discuss this question with respect to the usefulness of Financial Reporting Standards for Business Analysis and Valuation. b.) Explain how the qualitative criteria relevance, timeliness and comparability contribute to the usefulness of financial information. c.) Discuss the shortcomings of a statement of financial position as a proxy for company value.
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