acc 561 week 2 dq 498293
DQ 01:
What are the main objectives of ratio analysis and why is this important to external users of the financial statements, such as investors.
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DQ 02:
What are the main objectives of comparative analysis? Why is it important for external users of financial statements to perform this type of analysis on financial statements?
DQ 03:
As a corporate controller, I often use financial ratios in comparative analysis? What is comparative analysis? Why is it important and how is it useful to managers and internal users of financial statements?
DQ 04:
Why are liquidity ratios important in analyzing a company s financial health? What does it mean if a company cannot meet its financial obligations? How does this affect a company and its shareholders?
DQ 05:
If a company shows net income, does that mean they are a healthy company financially? Why or why not?
DQ 06:
How does ratio and/or comparative analysis assist companies whose profits are tied to a season?
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