← Statictics PhaseThe Accountant's Role →

Decision Case. Custom Decision Case Essay Writing Service || Decision Case Essay samples, help

Decision Case
  1. Which business has more assets?

Equity = Assets – Liabilities

For Sherman Lawn Service, assets are equal to $12000

 Grey’s Groovy Tunes assets are equal to $6000+$7000= $13000

This means that Grey Groovy Tunes had more assets as compared to Sherman Lawn Service.

Buy Decision Case essay paper online


* Final order price might be slightly different depending on the current exchange rate of chosen payment system.

Order now
  1. Which business owes more to creditors?

Grey’s Groovy Tunes the liabilities are $7,000.

Using the formula Equity= Assets – Liabilities, we find that Sherman Lawn Service liabilities amount to $4,000.

Therefore, Grey Groovy Tunes owes more to creditors as compared to Sherman Lawn Service.

  1. In which business has the owner invested more?

Investment in an organization is represented as equity. Therefore, Sherman Lawn Service $8,000 as compared to Grey’s Groovy Tunes of $6,000

  1. Which business brought in more revenue?

 Greg’s Groovy Tunes $53,000 which is arrived at as a summation of the expenses and the net income. This is as compared to Sherman Lawn Service $35,000

Stay Connected

Live Chat Order now
Stay Connected
  1. Which business is more profitable?

Sherman Lawn Service which has achieved $ 13,000 as compared Greg’s Groovy Tunes $9,000. This implies that Sherman Lawn Service is more profitable.

  1. Which of the foregoing questions do you think is most important for evaluating these two businesses? Question 1&5

Why? Question 1 because assets indicate the financial stability of a company and is sustainability in the long run. They also show the ease of liquidation of the company in case it needs to be wound up. Question 5 because good and high profits indicate a company is growing and have the capabilities of expanding, managerial improvements, good remunerations, highly competitive and business continuity. This means that this differentiates the successful businesses from those that are failures.

Limited time Offer

Get 19% OFF
  1. Which business looks better from a financial standpoint?

Sherman Lawn Service because it is more profitable and has fewer liabilities as compared to Greg’s Groovy Tunes.

Related Accounting essays

  1. The Accountant's Role essay
  2. Decision Making In Management Accounting essay
  3. Accounting Regulation essay
  4. Washington D.C Cost of Living on Low Income essay
  5. The Protection of the Digital World essay
  6. Statictics Phase essay
  7. Benefits and Limitations of Financial Account essay
  8. Management Accounting essay
  9. Tri-Cities Community Bank essay
  10. Country Differences in Accounting Standards essay

What our customers say?

Get 18% off Your discount code: Feb14  
  Online - please click here to chat