Chapter 11 Comments 8th ed

Chapter 11 Comments 8th ed - executive or managerial...

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Instructor Comments Chapter Eleven This chapter focuses on the analysis of data contained in the financial statements. The chapter contains numerous financial ratios and should be quite easy for those of you that are more a mathematically inclined. Those of you who struggle a bit more with numbers will have to spend a little more time on the ratios. A good understanding of chapter 11 will help you develop your knowledge regarding financial statements and meaningful relationships indicated within those statements. You should understand the formulas since they provide a more complete financial picture of a company than can be found by simply studying the financial statements themselves. The information contained in this chapter will also provide you with some concepts that will be especially useful in your first finance course. For those of you who may be interested in personally investing in stocks or bonds, the information contained in the chapter should be quite beneficial. The information is absolutely essential for those of you who hope to move into an
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Unformatted text preview: executive or managerial position. The appendix also provides interesting reading. Note that this chapter concludes our study of Financial Accounting . The remainder of the course focuses on Managerial Accounting . ADDITIONAL OBSERVATIONS: These thoughts (included in the Instructor Comments for most chapters) are a combination of the Authors ideas and mine. Hopefully, they will also help you focus your learning! 1. Understand the most frequently used financial ratios. 2. The price/earnings ratio is relevant to your personal financial management. 3. The trend of a ratio is more important than the ratio itself. 4. You should understand the characteristics being measured by each category of ratio. 5. Review the concept of financial leverage and the risks associated with long-term debt. 6. Not all judgments about an entity's operations involve financial data; other operating statistics are also a source of information....
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This note was uploaded on 04/23/2011 for the course ACC 490 taught by Professor Johnthompson during the Spring '10 term at Murray State KY.

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Chapter 11 Comments 8th ed - executive or managerial...

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