Annamalai Solution for Accounting For Managers 2019

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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 firm’s position at the end.