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77julia77 [94]
3 years ago
7

A financial ratio by itself tells us little about a company since financial ratios vary a great deal across industries. There ar

e two basic methods for analyzing financial ratios for a company: time trend analysis and peer group analysis. Why might each of these analysis methods be useful? What does each tell you about the company’s financial health?
Business
1 answer:
Sergio [31]3 years ago
3 0

Answer:

When doing time trend analysis for financial ratios we can know how a company's ratio's have changed over time or if they have remained the same, so for example if a company's current ratio was less than 1 a year ago and is 3 now it means that the company was not very liquid a year ago but since then has made changes because of which it is liquid now, so we can see how a company has performed over a certain period of time.

On the other hand peer group analysis tells us how a company is performing compared to other companies in the same industry. For example if our cement company has a profit margin of 7% but the industry average is 15% we know that our company is doing something wrong  or different as compared to the industry and we can look into it.

Explanation:

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When iTunes sells a song or movie, it must record the transaction in accounts. Which accounts might iTunes use when it sells a s
Kay [80]

Since the actual process of the transaction is instantaneous, and its takes the money directly out of your account, the account they're dealing with is most likely Revenue.

Accounts Receivable is also another option that may come to mind, but remember that in this account, the seller is waiting for payment. Once the responsible party pays the seller, A/R is credited (decreased) and Revenue is debited (increased).

With iTunes (as stated previously), the transaction happens right then and there. We pay cash and iTunes gives us the song/movie/album/etc. Therefore, the only logical answer would be <u>Revenue</u>. In this case, <em>Sales Revenue</em> since we're dealing with a type of retailer and not a service.

7 0
3 years ago
Which one of the following is not a primary component of an internal control system?
Bond [772]

The following is not a primary component of an internal control system <u>Control environment .</u>

<u />

The primary cause of inner controls is to assist safeguard an corporation and further its objectives. internal controls characteristic to limit risks and shield property, make certain accuracy of facts, sell operational efficiency, and inspire adherence to policies, rules, regulations, and legal guidelines.

Internal controls are techniques designed to help guard an enterprise and limit danger to its objectives. inner controls decrease risks and guard belongings, ensure accuracy of statistics, sell operational performance, and encourage adherence to policies, policies, policies, and laws.

Determining whether a specific internal manage machine is effective is a judgement because of an assessment of whether the five additives - manage surroundings, risk assessment, manage sports, information and communique, and tracking - are present and functioning.

Learn more about Internal controls here

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5 0
1 year ago
1. A complaint of sexual harassment by a part-time worker in a hardware business was upheld when the Tribunal found that the emp
Vesna [10]

Answer:

this  account shows sign's of sexual harassment  this goes against the rules of a work place due to the fact that employees and members of staff should feel protected at all times

Explanation:

8 0
2 years ago
At the preston company, purchases are recorded at net amounts. on august 5, $40,000 worth of merchandise was purchased on accoun
Julli [10]
Nekaozizb. A69291984 towiJb f f 18835!5. Wooziness r8289192 01948 02845
8 0
3 years ago
mike has $200 in his wallet. He pays a cell phone bill of $89.50. Then he earns $125 shoveling driveways. From mike lends $15 to
denis23 [38]

Answer:

$240.50

Explanation:

200-89.50 = 110.50

110.50+125 = 235.50

235.50-15 = 220.50

220.50 + 20 = 240.50

8 0
2 years ago
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