Define Profi tability ratios

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: What is an acceptable current ratio?

A: Definition: Ratio analysis: It is the financial analysis tool for measuring the profitability,…

Q: How much is the Alpha Unit segment controllable margin?

A: Segment controllable margin means the profit earned after deducting the variable expenses and…

Q: advantages and disadvantages of using ratios

A: Accounting ratios are important metrics used to evaluate the financial position of a business…

Q: Define Sharpe’s reward to variability ratio

A: Answer: Nobel Laureate William Sharpe developed a risk-adjusted efficiency indicator for mutual…

Q: What is Ratio Analysis? Briefly explain

A: Ratio Analysis: It is the procedure of analyzing and looking at money related data by determining…

Q: What are some steps that must be taken when using ratio analysis? What is the most important aspect…

A: To analyze the financial statements, ratio analysis is an important tool. Ratio analysis helps to…

Q: What are the Sharpe and Treynor rati pleces.) Sharpe ratio

A: The Sharpe and Treynor Ratios are both used to calculate the risk-adjusted return on an…

Q: Define coefficient of variation (CV)

A: Coefficient of variation: The coefficient of variation is considered as a statistical measure that…

Q: Define margin of safety ratio. Give an example.

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: Set out and explain the function of the p/e ratio

A: P/E ratio is a vital valuation ratio used in relative valuation methods. The function of pe ratio…

Q: Define comparative ratio analysis

A: Answer: Comparative analysis of the ratio is a method used by companies to judge the financial…

Q: What is common size analysis?

A: Answer: Common size analysis that measures the percentage sums of each element on the financial…

Q: The average value of a data set is called the O mean O median O mode statistic O O O

A: The total of the values in a data set when divided by the total number of values in the data set…

Q: Define the term cost variance.

A: Cost variance is the difference between actual costs and budgeted or estimated costs. Many of the…

Q: how to compute quantity/efficiency variance

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: ompare and contrast Liquidity ratio and solvency rati

A: Analysis of the company's financial statements, such as the balance sheet and income statement, can…

Q: One of several ratios that reflects solvency includes the:

A: Solvency ratio of the business means how well a company's cash flows can cover or pay long term…

Q: Discuss the advantages and limitations of Ratio Analysis.

A: Ratio analysis is the process of determining and interpreting numerical relationships based on…

Q: Define average return

A: The formula to compute average return as follows:

Q: Explain gaining ratio

A: Introduction:- Gaining ratio may be defined as Gaining ratio is a type of financial tool, which…

Q: Calculate the Gaining Ratio.

A: Since you have asked multiple questions, we will solve the first question for you. If youwant any…

Q: Define efficiency ratios

A: Efficiency Ratios : These ratios are employed to evaluate the efficiency with which the firm manages…

Q: Define the term variance analysis.

A: Variance:   Variance refers to the difference level in the actual cost incurred and standard cost.…

Q: Explain quick ratio

A: The formula to compute quick ratio as follows:

Q: Compute contribution margin using variable com

A: Variable costing is the method of costing, where only the variable costs are assigned to the cost of…

Q: Define current ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: current ratio.

A: Current ratio = Total current assets/Total current liabilities

Q: Current ratio

A: Working Capital = Current Assets - Current Liability   Current Ratio = Current Assets / Current…

Q: differences between Weighted Average and FIFO methods

A: Weighted Average and FIFO methods are used to value inventory of business.

Q: Explain an example how to calculate cost variance.

A: Cost variance is the difference of standard cost and actual cost in manufacturing of a product. Cost…

Q: what is quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: given information, which of the following shows the Current Ratio (CR) correctly?

A: Formula: Current Ratio= Current AssetsCurrent liability

Q: What is ratio analysis?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: How is the Quick Ratio calculated?

A: Definition:   Quick ratio: The financial ratio which evaluates the ability of a company to pay off…

Q: Define weighted average.

A: Inventory cost flow assumptions: These are the methods used by the companies to compute the cost…

Q: Define each of the following terms: e. NPV profile; crossover rate

A: NPV PROFILE: NPV(Net present value) profile is described as the values of net present value and the…

Q: Formula for quick ratio?

A: Quick ratio is an important financial ratio used to evaluate the liquidity of the company

Q: Describe the two basic differences between the weighted average and the FIFO method.

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: Define variance analysis.

A:

Q: The FIFO method provides a major advantage over the weighted-average method in that______?

A: The FIFO method provides measurements of work done during the current period .

Q: solvency ratios

A: Solvency ratio indicates the company's ability to pay off its debt obligation.