Completing the DQs
Use the following chapter to help complete the Discussion Questions below. (NO REPEATING OF INFORMATION) (NO PLAGIARISM) (FOLLOW INSTRUCTIONS BELOW) please cite and add references from the book.
Read Appendix H of Accounting: Tools for Business Decision Making (6th ed.).
1.)(Respond back to question between 100- words) This week we are learning about bonds, and the liabilities associated with them which are either current or long-term liabilities.
So, let’s think about what we’ve learned in class in the previous weeks about accounting ratios and about how that current and long-term liabilities are viewed as ratios. Please take a look at these videos: the first one is short and will help you understand how long-term debt or liabilities affects ratios that are indicative of health. The second helps us better understand current liabilities to current assets ratios.
https://www.youtube.com/watch?v=EsZkkTrio7w For print of the audio, please click on the closed caption icon on the right hand side of the bottom bar of the video.
When thinking about the assets to long-term debt ratio, a smaller number is healthier than larger numbers.
Class: What strategies might a business manager put into place if there is a high assets to long term debt ratio that needs to be brought down? Please begin a discussion.
3.)(Respond to question between 90-100 words) We are learning this week about both stock and debt investments. Both types of investments are for the purpose of generating money for the corporation.
Class: What types of things do you think companies would do with the monies that are generated from investments? Please begin a discussion about different uses that corporations would have for influxes of dollars.
Review Ch. 13 of Accounting: Tools for Business Decision Making (6th ed.)
4. Review Ch. 13 of Accounting: Tools for Business Decision Making (6th ed.) (Write your thoughts on the Chapter between 80-90 words)
5.) (Answer question between 90- words)Horizontal analysis is something that I use monthly and generally weekly as I review budgets and our income statement. This is a practical tool that helps me to work with my management team to keep the business on track.
On the income statement I can see actual data (revenues and expenses) and also budgets. So I can see monthly data compared to budgets, and whether or not line items are above or below budget. Then I can see year to date how we look relative to budgets. Lastly, I can see last year’s figures for a comparison. So I can go line by line using this analysis and make adjustments as necessary to keep the business going in the right direction.
Class: Does anyone use horizontal analysis in your business or work? If so, please share. If not, what do you think some advantages might be?
6.) (Respond back to post between 80- words) A discontinued operations is a component of an entity that either has been disposed of or is classified as held for sale and represents either a separate major line of a business or a geographical area of operation. Discontinued operations can include a subsidiary, line of business, product line, class of customer, or even a geographical operating area. The income loss from discontinued operations consist of two parts, which are the income loss from operations and the gain or loss on disposal of the component.
24 mins ago
In every business organization that is operating with a higher debt ratio, there is the need of ensuring that the high asset to long-term debt ratio is brought down for the business organization to achieve increased profits. The strategies that a business manager can put in place to reduce the high asset to long-term debt ratio is through increasing the business assets through purchasing stocks. The other strategy is that the business can undertake to pay off the long-liabilities especially the loans that the business acquired from the various financial institution. The manager can also decide to sell the business assets and lease them back as this will induce a cash flow to the business which can be used to pay off debts……..
APA 653 words