Limitations of Ratio Analysis

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Book: Tools for Business Decision


The authors of the textbook explain the three types of business activities all companies encounter. Does a company's IT department have economic transactions for each of the three types of business activities? Why or why not? Provide a specific example of an economic transaction for each activity type to support your conclusions. Be sure to use examples not already used by a fellow student. To participate in follow-up discussion, provide a respectful critique of two other students' responses. Assignment 4 and Q4




Read "Beginners' Guide to Financial Statement," by the U.S. Securities and Exchange Commission (SEC, 2007), located on the SEC website.

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