Evaluating a business

Question 1

what are performance benchmarks?

Answer 1

There are several financial benchmarks or standard that accountants and management can use to evaluate performance.

Question 2

whats a trend analysis?

Answer 2

Used when comparing one period’s profit to the previous results provides management with a trend in profit results over time. The trend may indicate improving performance or declining profit.
Net Profit Margin
Return on Owner’s Investment
Rate of Return on Assets

Question 3

what is an et profit margin?

Answer 3

-There are several financial benchmarks or standards that accountants and management can use to evaluate performance.
-% of revenue left as profit after all expenses have been taken into account

Question 4

formula for net profit margin

Answer 4

net profit/net sales x 100/1

Question 5

what is return from assets?

Answer 5

-the return earned on the investments made
-net profit/avg total assets x 100