Answer to Question #142234 in Management for corynn nicole porcino

Question

HOSPITALITY ACCOUNTING
Name 2 of the possible sources that current operating results for a period may be compared to internally in order to determine how well the operation is meeting its goals and expectations

Answer 1

The sources that a current operating results for a period may be compared to internally include the following:

Cash Flow Statements

Cash flow statements can be used in ascertaining the outflow and inflow of cash. These statements can be used by a company in comparing how cash in the organization is generated and spent. Doing a comparison of these statements with the previous periods will enable the company in understanding whether it has improvised in the cash management and see the areas that it should focus on in meeting the company’s cash needs.

Ratios

Ratios are an important tool that ensures internal comparison for companies. Profitability ratios such as the net profit ratio and gross profit ratio can be used in the analysis of the company’s performance based on the profit performance. Other ratios that can also be used in comparing the solvency, liquidity, and growth among others.