The Best Way to Break Down and Analyze Sales Data

question 134

Multiple Choice

The best way to break down and analyze sales data is:

• A) by order size.
• B) by geographic region.
• C) by customer type.
• D) by product, package, size, grade or color.
• E) any of these are correct, depending on the situation.

Understand and calculate dividend yield and price-earnings ratio and their significance to investors.

Identify the reasons for and the accounting treatment of prior period adjustments.

Compute and interpret the book value per share of a company’s common stock.

Understand the significance of dividend per share and how it relates to market price per share and earnings per share.

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Definitions:

Accounting Estimate

Approximations or judgments made by management in preparing financial statements, necessary when a precise value cannot be readily determined.

Retrospective Application Method

A method of applying new accounting policies to transactions, other events, and conditions as if the new policies had always been in place.

Financial Statements

Reports summarizing the financial performance and position of a company, including the income statement, balance sheet, and cash flow statement.

Company's Management

The group of individuals who operate at various levels within a company and are responsible for making decisions, implementing strategies, and running day-to-day operations.