ACC 561 Week 2 DQ

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.

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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