Financial Accounting Discussion Questions
DQ #1 — Horizontal and Vertical Analyses
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What are some examples of how horizontal and vertical analyses are used in the decision-making process (think of business managers and supervisors as well as investors, bankers and other interested outside parties)?
DQ #2 — Ratio Analysis
- What are some common ratios used to analyze financial information? Which are the most important and why?
- What are some examples of how ratios are used in the decision-making process (think of business managers and supervisors as well as investors, bankers and other interested outside parties)?
- Find an article from the internet that is a report of a company’s financial ratios like P/E ratio and Earnings Per Share. List the source of the article and summarize (very briefly) what was said about the company based on the financial ratios.
