Imagine that, you are the owner of a business. Pass journal entries with 20
different transactions. Prepare a position statement after every transaction. Did
your firm earn profit or made a loss at the end of all transaction? Make a small
comment on your firm’s position at the end.
Discuss how internal rate of return (IRR) method differs from the net present
value method (NPV). Be sure to include an explanation of what the IRR method
is and what the NPV method is.
Suppose you are the co-owner and manager of a retail store that sells and
repairs mountain bikes. Provide one example of a financial accounting report
that would be useful to you and your co-owner. Provide two examples of
managerial accounting reports that would be useful to you as the manager.
What are the significant assumptions we make while comparing financial ratio
of various companies in the same industry? Discuss the implications of the
above assumptions for a user of financial ratios.
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