TAILIEUCHUNG - Lecture Accounting: What the numbers mean (10/e): Chapter 3 - Marshall, McManus, Viele

Chapter 3 - Fundamental interpretations made from financial statement data. After reading this chapter, you should be able to answer the following questions: Why are financial statement ratios important? How is return on investment calculated and why is it important? What is the DuPont model and what do margin and turnover mean? What is the significance of return on equity and how is it calculated? . | 2008 The McGraw Hill Companies Inc. All Rights Reserved. McGraw Hill Irwin Copyright 2014 by The McGraw Hill Companies Inc. All rights reserved. Chapter 3 Fundamental Interpretations Made from Financial Statement Data PowerPoint Authors Susan Coomer Galbreath . CPA Charles W. Caldwell . CMA Jon A. Booker . CPA CIA Cynthia J. Rooney . CPA McGraw Hill Irwin Copyright 2014 by The McGraw Hill Companies Inc. All rights reserved. 23 LO 1 Financial Ratios and Trend Analysis A ratio is simply the relationship between The large dollar amounts two numbers. reported on the financial statements of many companies and the varying size of companies make ratio analysis the only sensible method of evaluating various financial characteristics. McGraw Hill Irwin 3 3 2008 The McGraw Hill Companies Inc. All Rights Reserved. 24 LO 1 Trend Analysis Trend analysis compares a single observation over several years. McGraw Hill Irwin 3 4 2008 The McGraw Hill Companies Inc. All Rights Reserved. 25 LO 2 Rate of Return Rate of Amount of return return Amount of investment This ratio provides the return on a given investment alternative. All other things being equal the higher the rate of return the more profitable the alternative. The rate of return calculation is derived from the interest calculation. Interest Principal Rate Time Higher rates of return are associated with greater risk McGraw Hill Irwin 3 5 2008 The McGraw Hill Companies Inc. All Rights Reserved. 26 LO 2 Return on Investment . Return on Net income investment Average total assets This ratio describes the rate of return management was able to earn on the assets that it had available during the year. An informed judgment about the firm s profitability requires relating net income to the assets used to generate that net income. McGraw Hill Irwin 3 6 2008 The McGraw Hill Companies Inc. All Rights Reserved. 27 LO 3 The DuPont Model Return on Net income Sales investment Sales Average total assets Margin Turnover

• Kế toán - Kiểm toán
• Lecture Accounting
• Financial accounting
• Managerial accounting
• Accounting information
• Financial ratios
• Investment calculations
• Lecture Financial accounting
• Management accounting
• Accounting standards
• Accounting equation
• Intermediate accounting
• Lecture Intermediate accounting
• Accounting process
• Accounting processing cycle
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Merchandising operations
• Lecture Accounting 1
• Accounting for main transactions
• Accounting for purchases
• Accounting for sales
• Accounting for expenses
• Principle of accounting
• Lecture Principle of accounting
• The basic accounting equation
• Transaction analysis in accounting equation
• Calculate the accounting equation
• Lecture Advanced financial accounting
• Bài giảng Kế toán tài chính nâng cao
• Advanced financial accounting
• Accounting policies
• Accounting estimate
• Retrospective application
• Changes in accounting estimates
• Retrospective restatements
• Accounting assumptions
• Lecture Management accounting
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• Nature of management accounting
• Component of accounting system
• Financial system
• Lecture Accounting and financial system
• Ledger accounting
• Trial balance
• Completing the accounting cycle
• Accounting cycle
• Accounting worksheet
• Classified balance sheet
• Accounting changes
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• Accounting choices
• Accounting for business
• Lecture Accounting for business
• Accounting entity
• Classification of assets
• Accounting equation transactions