Illustrate the steps involved in ratio analysis, Managerial Accounting

Assignment Help:

Steps involved in ratio analysis

The following are the four steps involved in the ratio analysis:

1) selection of relevant data from the financial statement depending upon the objective of the analysis

2) calculation of appropriate ratios from the above data

3) Comparison of the calculation ratio with the ratios of the same firm in the past or the ratios developed from projected financial statement or the ratios of some other firms or the comparison with ratio of the industry to which the firm belongs.

4) Interpretation of the ratios.

 


Related Discussions:- Illustrate the steps involved in ratio analysis

Accounting cycle, Accounting Cycle is the name given to the combined proces...

Accounting Cycle is the name given to the combined process of recording and processing the accounting proceedings of a company. The series of steps start when a transaction takes p

Steps making decisiontree, Steps making DecisionTree A decision tree is...

Steps making DecisionTree A decision tree is a graphical representation of decision process indicating decision alternatives, states of nature, related probabilities and condit

Explain the various stages of product life cycle, Various stages of product...

Various stages of product life cycle Typically the life cycle of a manufactured product will consist of the following stages: 1) market research : before any investment in

What is incremental budgeting, Incremental budgeting Incremental budget...

Incremental budgeting Incremental budgeting uses a budget prepared using a last period budget or actual performance as a base with incremental amount asses for the new budget p

English, accounting process or accounting cycle

accounting process or accounting cycle

Bills of exchange, A bill is explained as an unconditional order in writing...

A bill is explained as an unconditional order in writing, addressed through one person to the other, signed through the person providing it, requiring the person to whom it is addr

Explain support activities and production process activity, Explain Support...

Explain Support activitiesand production process activity Support activities are for example schedule production set up machine purchase materials inspect item customer orde

Negotiated prices-transfer pricing methods, Negotiated prices Where mar...

Negotiated prices Where market based prices are not applicable, it has been argued that allowing managers to bargain with each other in order to establish transfer prices devel

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd