Where are people at.. in terms of work (chapters done)?

[eeps]

Nearly finished with budgeting, then its just the theory part to go. Yay:)

haha yeah chapter 21 is just theory. it's not too bad though, especially because there is a light at the end of the tunnel when doing it.

LOL. same. I'm happy.

NO MORE PRACTICAL! I was getting bored of doing all that PRACTICAL work.

Evaluating Profitability and Evaluating Liquidity FTW!

[eeps]

Question:

ARE we expected to memorise every single formula like Return on Owner's Investment (ROI), Return on Assets (ROA), Asset Turnover (ATO), Net Profit Rate (NPR) etc. - [Evaluating Profitability] in the end-of-year (Unit 4) exam?..

[Albeno69]

Question:

ARE we expected to memorise every single formula like Return on Owner's Investmen (ROI), Return on Assets (ROA), Asset Turnover (ATO), Net Profit Rate (NPR) etc. - [Evaluating Profitability] in the end-of-year (Unit 4) exam?..

na we get then given to us but we need to know what they mean, effects and ext

[eeps]

Question:

ARE we expected to memorise every single formula like Return on Owner's Investmen (ROI), Return on Assets (ROA), Asset Turnover (ATO), Net Profit Rate (NPR) etc. - [Evaluating Profitability] in the end-of-year (Unit 4) exam?..

na we get then given to us but we need to know what they mean, effects and ext

OK. THANKS.

[pooshwaltzer]

What can you deduce from a case where RoI and RoA are divergent?

[eeps]

What can you deduce from a case where RoI and RoA are divergent?

According to the Cambridge VCE Textbook:

• "THE Return on Owner's Investment will always be higher that the Return on Assets. This is because owner's equity will always be lower than total assets, which in turn is due to its borrowing - its liabilities. Only a firm that has no liabilities (which is extremely unlikely) will the Return on Owner's Investment be the same as the Return on Assets."

[pooshwaltzer]

What can you deduce from a case where RoI and RoA are divergent?

According to the Cambridge VCE Textbook:

• "THE Return on Owner's Investment will always be higher that the Return on Assets. This is because owner's equity will always be lower than total assets, which in turn is due to its borrowing - its liabilities. Only a firm that has no liabilities (which is extremely unlikely) will the Return on Owner's Investment be the same as the Return on Assets."

And in the case of a net deficit/loss from operations, ie. -ve net profit?