Annamalai Study Material by DistPub – Accounting And Finance For Managers

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Accounting And Finance For Managers
DistPub Team
Q1 What are the significant assumptions we make
while comparing financial ratio of various
companies in the same industry? Discuss the
implications of the above assumptions for a user
of financial ratios.
Q2 Suppose you are the co-owner and manager of a
retail store that sells and repairs mountain
bikes. Provide one example of a financial
accounting report that would be useful to you and
your co-owner. Provide two examples of managerial
accounting reports that would be useful to you as
the manager.
Q3 Discuss how internal rate of return (IRR)
method differs from the net present value method
(NPV). Be sure to include an explanation of what
the IRR method is and what the NPV method is.
Q4 Imagine that, you are the owner of a
business. Pass journal entries with 20 different
transactions. Prepare a position statement after
every transaction. Did your firm earn profit or
made a loss at the end of all transaction? Make a
small comment on your firms position at the end.
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