After attending a recent finance Webex seminar you were very concerned
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After attending a recent finance Webex seminar you were very concerned

Question 5

After attending a recent finance Webex seminar you were very concerned about the following statements made by the guest speaker:

• “Budgeting is a complete waste of business resources”

• “Ratio analysis has so many limitations that it is a useless exercise”

• “Accounting Rate of Return is the best investment appraisal technique”

• “Forget cash…. the shareholders want to see profit”

You certainly disagree with the views of the guest speaker, but having only recently completed your module in accounting you lacked the confidence to argue in public with the speaker.

Required:

Explain why you disagreed with each of these statements.

Hint
Accounts & FinanceThe process of budgeting is making a strategy for how you will spend your money. A budget is the name for this spending strategy. Making a spending plan allows you to know ahead of time if you will have enough money to do the things you need or want to do. Simply said, budgeting is the process of balancing your expenses and income. A budget aids in the development of financia...

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