Description
(1) Complete the attached practice assignment
(2) Write a 250-word response reflecting on your experience making the calculations from the practice assignment. (attached) In your reflection, share your thoughts on the activities. Consider how calculating financial statements will help drive effective business decisions. Use a minimum of two references
Address the following questions within your response:
- Which calculations were challenging for you? Why?
- Which ratios were difficult to understand?
- What will you do differently in the following weeks?
If you did not have any challenges, respond to the following questions:
- What prepared you for these calculations?
- What advice would you give a classmate who needs assistance?
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Explanation & Answer
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Running Head: MANAGERIAL ACCOUNTING
Managerial accounting
Student's name
Institution's affiliations
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MANAGERIAL ACCOUNTING
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Managerial accounting
Financial accountancy is a critical skillset since it will enrich my influence towards
manipulating corporate transactions and initiating informed decisions. Keeping track of all
financial transactions will enable any organization to work at a profit margin.
Records
summarization, transactional streams, and resource scarcity are some of the manager facets
outlines by generally accepted accounting principles (GAAP).
During my financial workout, I have encountered several inevitable challenges in my
equitation. The current ratio, which is also considered the working-capital balance, impacted
some little challenges on me. Calculating total existing assets versus the total current liabilities
sounds a bit complex but needs some deep understanding over organizational assist assessments,
and liability share holds in the company. Credible current ration equitation initiates devolved
liquidity settle debts and payables in company production leverage.
The acid ratio is obtained by adding cash and cash equivalents, short-term marketable
securities, and accounts receivables non-trade receivables, which are the current liquid assets,
then dividing them by total current liability remains tricky to me. Quick (acid-test) ration audits
the company's abilities to utilize short-term investments to secure immediate liabilities while
ignoring inventory assets.
Moreover, return on equity (ROE), which tells much about companies earning from
individuals, needs an extra mile deep excavation. To obtain ROE, one needs to divide net
incomes with shareholders' equity, thus requires more practice and proficiency in the financial
field. Debt on equity returns, recognizable as the long-term solvency ratio, illustrates the
relationship between the portion of assets financed by creditors and the assets funded by
MANAGERIAL ACCOUNTING
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stakeholders. Therefore, all statistical, financial calculation requires more proficiency and
practicing to avoid financial distortions and transactional inflations.
To address the same in the coming week, consulting a financial auditor or statist w...