Accounting (9-1) - 0985 CIE

Inter-business Comparison

Akopọ

How do you know whether a 20% gross margin is good? One powerful answer is to look at a similar business. Inter-business comparison sets one firm's ratios beside another's, so strengths and weaknesses stand out that a single set of accounts could never reveal. If one shop earns a better return on its capital, or collects from customers faster, the comparison shows it plainly and points to where the other could improve.

In this lesson you will learn how to compare the ratios of two businesses and draw sensible conclusions about profitability, liquidity and efficiency. Just as importantly, you will learn why such comparisons must be handled with care: different accounting policies, different sizes, different year ends and missing non-financial information can all make a comparison misleading if you ignore them.

Awọn Afojusun

  1. the factors that may affect the ratios of two businesses.
  2. the problems of inter-business comparison.

Akọ̀wé Ẹ̀kọ́

A ratio means far more when it has something to be measured against. Comparing a business with a similar rival, or with the typical figures for its trade, shows whether it is leading or lagging. But a careless comparison can mislead just as easily as it informs, so a good analyst knows both how to compare and when a comparison cannot be trusted.

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Ìdánwò Ẹ̀kọ́

Oriire fun ipari ẹkọ lori Inter-business Comparison. Ni bayi ti o ti ṣawari naa awọn imọran bọtini ati awọn imọran, o to akoko lati fi imọ rẹ si idanwo. Ẹka yii nfunni ni ọpọlọpọ awọn adaṣe awọn ibeere ti a ṣe lati fun oye rẹ lokun ati ṣe iranlọwọ fun ọ lati ṣe iwọn oye ohun elo naa.

Iwọ yoo pade adalu awọn iru ibeere, pẹlu awọn ibeere olumulo pupọ, awọn ibeere idahun kukuru, ati awọn ibeere iwe kikọ. Gbogbo ibeere kọọkan ni a ṣe pẹlu iṣaro lati ṣe ayẹwo awọn ẹya oriṣiriṣi ti imọ rẹ ati awọn ogbon ironu pataki.

Lo ise abala yii gege bi anfaani lati mu oye re lori koko-ọrọ naa lagbara ati lati ṣe idanimọ eyikeyi agbegbe ti o le nilo afikun ikẹkọ. Maṣe jẹ ki awọn italaya eyikeyi ti o ba pade da ọ lójú; dipo, wo wọn gẹgẹ bi awọn anfaani fun idagbasoke ati ilọsiwaju.

  1. An inter-business comparison is most valid when the two businesses are: A. In different trades B. Of very different sizes C. Similar in type and size D. From different countries Answer: C
  2. Business X has a higher gross margin than Business Y, but Business Y has a higher profit margin. The most likely reason is that Business Y: A. Sells at higher prices B. Controls its expenses better C. Has more inventory D. Has a lower revenue Answer: B
  3. Which of the following would make a comparison between two businesses misleading? A. They use the same depreciation method B. They have the same year end C. They use different inventory valuation methods D. They are in the same trade Answer: C
  4. A factor that influences a business's success but does NOT appear in its accounting ratios is: A. The gross profit B. The skill of the workforce C. The cost of sales D. The revenue Answer: B
  5. Comparing ratios for one year only is a problem because: A. Ratios cannot be calculated for one year B. Trends cannot be identified and the year may not be typical C. The figures are always wrong D. One year is always atypical Answer: B

O wa lori ohun elo Green Bridge

Gba ohun elo Green Bridge CBT sori foonu tabi kọmputa rẹ lati ri awọn akọsilẹ ẹkọ ni kikun, awọn ibeere adaṣe, ati diẹ sii.

Awọn akọsilẹ ẹkọ ni kikun pẹlu awọn aworan apejuwe
Oluranlọwọ ẹkọ ti AI ṣe agbara rẹ
Kọ ẹkọ laisi intanẹẹti, nigbakugba, nibikibi
O wa lori Android, Windows, macOS, ati Linux

O wa lori ohun elo Green Bridge

Gba ohun elo Green Bridge CBT sori foonu tabi kọmputa rẹ lati ri awọn akọsilẹ ẹkọ ni kikun, awọn ibeere adaṣe, ati diẹ sii.

Awọn akọsilẹ ẹkọ ni kikun pẹlu awọn aworan apejuwe
Oluranlọwọ ẹkọ ti AI ṣe agbara rẹ
Kọ ẹkọ laisi intanẹẹti, nigbakugba, nibikibi
O wa lori Android, Windows, macOS, ati Linux

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Ṣe o fẹ ṣe adaṣe awọn ibeere idanwo adaṣe nipa Inter-business Comparison? Ṣe igbasilẹ ohun elo Green Bridge CBT lati wọle si awọn ibeere idanwo adaṣe ati awọn ayẹwo adaṣe kikun fun koko-ọrọ yii.

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