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Questions and Answers
Why do engineering firms require longer term financial plans?
What does an operating budget indicate?
What is the main purpose of a performance appraisal?
Which of the following is NOT typically found in a statistical report within an engineering firm?
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Why is a three-year financial plan useful for an engineering firm involved in constructing the Light Rail Transit (LRT)?
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How do figures in an operating budget function as per the text?
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What does the acid-test ratio measure?
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How is the current ratio computed?
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What does the inventory turnover ratio measure?
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Which ratio is used to measure the utilization of a company's fixed assets?
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What does the debt to total assets ratio show?
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Which ratio indicates a company's ability to pay off short-term obligations without selling inventories?
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What is the primary purpose of analyzing changes in figures on income statements when compared to previous years?
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In financial ratio analysis, what does the comparison of a pair of accounts to constitute a ratio help achieve?
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Which type of financial ratio focuses on a company's ability to meet its current obligations?
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What is the purpose of comparing financial ratios to required norms in financial analysis?
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Which category of financial ratio analysis focuses on how effectively a company utilizes its assets?
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What action is usually taken when deviations occur in financial ratio analysis?
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