Managerial Accounting Reflective Essay
Reflection 1
This reflection is comprised of two sections, collectively totaling a minimum of 550 words. Complete your reflection by responding to all prompts.
Ratio Analysis
Financial statement analysis focuses primarily on isolating information that is useful for making a particular decision. Through ratio analysis, users of financial data can analyze various relationships between items reported.
Describe the 3 main categories of ratios and provide a specific example of a ratio that is used in each category. For each of the 3 ratios you selected, describe how it is used in managerial decision-making.
Financial ratios are largely utilized by organizations and companies to determine their financial health and make investment decisions based on the ratios. To that effect, there are three main categories of ratios which include liquidity, profitability and solvency ratios.
The three main categories of ratio
Managerial Accounting Reflective Essay
Analytical Techniques
Managers can choose from several analytical techniques to help them make capital investment decisions. Each technique has advantages and disadvantages. Distinguish between the 3 capital investment techniques of:
Net Present Value
Internal Rate of Return
Payback Method
Describe what you consider to be the top 2 advantages and 2 disadvantages of each technique and provide an example to support your top advantage of each method.
Submit your reflection.
Managerial Accounting Reflective Essay
Reflection 1
This reflection is comprised of two sections, collectively totaling a minimum of 550 words. Complete your reflection by responding to all prompts.
Ratio Analysis
Financial statement analysis focuses primarily on isolating information that is useful for making a particular decision. Through ratio analysis, users of financial data can analyze various relationships between items reported.
Describe the 3 main categories of ratios and provide a specific example of a ratio that is used in each category. For each of the 3 ratios you selected, describe how it is used in managerial decision-making.
Financial ratios are largely utilized by organizations and companies to determine their financial health and make investment decisions based on the ratios. To that effect, there are three main categories of ratios which include liquidity, profitability and solvency ratios.
The three main categories of ratio. APA.