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ACCCB543_Competency_1_Part_1.docx Ratio Analysis Reflection University of Phoenix ACC

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ACCCB543_Competency_1_Part_1.docx Ratio Analysis Reflection University of Phoenix ACCCB/543: Managerial Accounting and Legal Aspects of Business Ratio Analysis Reflection The practice activity in module 1 was very ...

ACCCB543_Competency_1_Part_1.docx Ratio Analysis Reflection University of Phoenix ACCCB/543: Managerial Accounting and Legal Aspects of Business Ratio Analysis Reflection The practice activity in module 1 was very helpful to understand and perform the calculations for different ratios. The main text explains the calculation but fails to detail which specific figures to use and not to use from financial statements when calculating. This was the most challenging part for me. Inside of the practice is a hint box with a lifesaver icon that walks through each ratio and detail exactly which figures to use in your calculation. This was very important to obtaining the correct responses. None of the ratios were difficult to understand, rather the challenge was understanding the usefulness or impact of some ratios. These ratios reflect a companys profitability and debt-paying ability on a very high level that is not extremely useful in middle management of a large organization. Senior leadership and investors likely find the information much more useful when evaluating a company as a whole. However, several of the ratios that measure debt paying ability and profitability can be applied to smaller divisions of an overall company in the same manner since large companies often build financial statements for individual profit centers in addition to the overall organization. In following modules, I plan to overview the information in the text and then move straight to practicing to ensure I can execute the formu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . .

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