Describe the three main categories of ratios


Assignment: Managerial Accounting & Legal Aspects of Business

Reflection

This reflection is comprised of two sections, collectively totaling a minimum of 500 words. Complete your reflection by responding to all prompts.

Ratio Analysis

Financial statement analysis focuses primarily on isolating information that is useful for making a particular decision. Through ratio analysis, users of financial data can analyze various relationships between items reported.

Describe the 3 main categories of ratios and provide a specific example of a ratio that is used in each category. For each of the 3 ratios, you selected, describe how it is used in managerial decision-making.

Analytical Techniques

Managers can choose from several analytical techniques to help them make capital investment decisions. Each technique has advantages and disadvantages. Distinguish between the 3 capital investment techniques of:

a. Net Present Value
b. Internal Rate of Return
c. Payback Method

Describe what you consider to be the top 2 advantages and 2 disadvantages of each technique and provide an example to support your top advantage of each method.

Format your assignment according to the give formatting requirements:

a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.

b. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.

c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.

Solution Preview :

Prepared by a verified Expert
Managerial Accounting: Describe the three main categories of ratios
Reference No:- TGS03146896

Now Priced at $40 (50% Discount)

Recommended (94%)

Rated (4.6/5)