Question

What are the variance conditions when ratio analysis cannot be an efficient method for prudent financial...

What are the variance conditions when ratio analysis cannot be an efficient method for prudent financial decision making?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

There are various variance variance conditions, when ratio analysis can not be an efficient method for prudent financial decision making.

1.Ratio analysis is a quantitative analysis method and not a qualitative analysis method , so it does not consider subjective information.

2. In Ratio analysis there is scope for  window dressing because the books of accounts of the company can be manipulated.

3. Ratio analysis is based on assumptions , different assumptions of different analyst make ratio analysis unrealiable and it may lead to variations.

4.Ratio analysis generally makes correlation between ratios of organizations but its inadequate because of difference in methods of accounting between organizations.

5.The exactness of ratio analysis may influence by contrains of financial proclamations.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What are the limitations of financial ratio analysis? Give examples
What are the limitations of financial ratio analysis? Give examples
Analysis of variance is a very common analytical analysis method and it can be accomplished in...
Analysis of variance is a very common analytical analysis method and it can be accomplished in R. What are the benefits of ANOVA, and how is it accomplished in the R language?
What is a financial statement analysis ratio that includes current liabilities in the calculation?
What is a financial statement analysis ratio that includes current liabilities in the calculation?
In a two-factor analysis of variance, a main effect is found when there is a ____________....
In a two-factor analysis of variance, a main effect is found when there is a ____________. the difference between the largest treatment mean and the smallest treatment mean significant difference between the two factors significant difference among the levels of one factor significant difference among all treatment conditions
what should you do financial analysis when there is no financial statements? please explain.
what should you do financial analysis when there is no financial statements? please explain.
The following table shows the results of an analysis of variance comparing three treatment conditions with...
The following table shows the results of an analysis of variance comparing three treatment conditions with a sample of n = 7 participants in each treatment. Note that several values are missing in the table. What is the missing value for SSERROR? Source SS      df      MS      Treatment   20      xx      xx      F = xx   p = xx Error xx xx        2 Total xx xx
When analyzing financial statements, which ratio calculation measures business liquidity ___________________________________ When analyzing financial statements, what...
When analyzing financial statements, which ratio calculation measures business liquidity ___________________________________ When analyzing financial statements, what can you conclude when the inventory turnover ratio increases from 4.0 to 6.0 over a three year period. The day’s inventory held are within the typical industry average The day’s inventory held has increased over time The day’s inventory held has decreased over time When analyzing financial statements, what can you conclude when the accounts receivable turnover ratio decreases from 9.0 to 6.0 over...
The following table shows the results of a repeated-measures analysis of variance, comparing four treatment conditions...
The following table shows the results of a repeated-measures analysis of variance, comparing four treatment conditions with a sample of n = 8 participants. Note that several values are missing in the table. What is F for this data? Source SS df MS Between 45 Within 135 Bet sub 30 error 105 Total 180
Coca-Cola Purpose Financial ratio analysis is one of the best techniques for identifying and evaluating internal...
Coca-Cola Purpose Financial ratio analysis is one of the best techniques for identifying and evaluating internal strengths and weaknesses. Potential investors and current shareholders look closely at firms’ financial ratios, making detailed comparisons to industry averages and to previous periods of time. Financial ratio analyses provide vital input information for developing an IFE Matrix Financial Ratios for Coca-Cola (2018) Liquidity Ratios: - Current ratio: - Quick ratio: Leverage Ratios: - Debt-to-total-assets ratio: - Debt-to-equity ratio: - Long-term debt-to-equity ratio: -...
In a within-subjects analysis of variance, the F ratio compares _____________ to ____________. a. within-group variability;...
In a within-subjects analysis of variance, the F ratio compares _____________ to ____________. a. within-group variability; unexplained variability b. within-condition variability; subject variability c. explained variability; within-group variability d. between-condition variability; explained variability e. between-condition variability; total variability A main effect occurs when the..... a. simple main effects vary b. marginal means vary c. estimated frequencies vary d. observed frequencies are constant Please explain! thanks :)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT