These are a few questions I am struggling with detailed answerstoo any help would be appreciated, please and a sincere thankyou...
1. How can the ratio of net sales to total assets calculation asa calculation of effective management lead to poor decision makingin the investment for a business? Discuss the strength and weaknessin evaluating a manager's performance based on ratios and numbersonly.
2. You are called in to a management meeting to discuss theadvantages of the direct write off method vs. the percent of salesmethod. The owner of the company wants clarity on the position ofthe company when looking at accounts and also is very fearful of anIRS audit so he "doesn't want any trouble". Which method would yourecommend and why? Be sure to explain all the advantages anddisadvantages of each and fully develop the explanation ofeach.
3. Depreciation is often one of the most confusing conceptscovered in any accounting course. How would you describe the use ofdepreciation and the methods available to utilize the expense andcost recovery? Explain the concepts first to another accountant,then to an owner that doesn't have a backround in formal businesseducation.
4. Use chapter 11 as the foundation to discuss the growing issueof establishing and managing a pension fund. Why is it that we seemore and more businesses going away from the offering of a pensionto employees? Is this in the best interest of the employer oremployee (or both or neither)?
These are a few questions I am struggling with detailed answerstoo any help would be appreciated, please and a sincere thankyou...
1. How can the ratio of net sales to total assets calculation asa calculation of effective management lead to poor decision makingin the investment for a business? Discuss the strength and weaknessin evaluating a manager's performance based on ratios and numbersonly.
2. You are called in to a management meeting to discuss theadvantages of the direct write off method vs. the percent of salesmethod. The owner of the company wants clarity on the position ofthe company when looking at accounts and also is very fearful of anIRS audit so he "doesn't want any trouble". Which method would yourecommend and why? Be sure to explain all the advantages anddisadvantages of each and fully develop the explanation ofeach.
3. Depreciation is often one of the most confusing conceptscovered in any accounting course. How would you describe the use ofdepreciation and the methods available to utilize the expense andcost recovery? Explain the concepts first to another accountant,then to an owner that doesn't have a backround in formal businesseducation.
4. Use chapter 11 as the foundation to discuss the growing issueof establishing and managing a pension fund. Why is it that we seemore and more businesses going away from the offering of a pensionto employees? Is this in the best interest of the employer oremployee (or both or neither)?
