How Financial Modelling Techniques Can Be Used By Cpa?

818 words - 3 pages

Microsoft Excel enables user to recalculate complete spreadsheet quickly to evaluate different outcomes. There are some modeling techniques that user can use as a comparison for making financial decisions from several variables (Presto, pg. 326). They are Sensitivity analysis, goal seeking and sensitivity analysis.I. Sensitivity AnalysisSensitivity analysis is "a process of analysis the changing of a single variable in a small increments or decrements to see how sensitive model results are to the small changes in the said variable". It will enable user to determine the impact on a model' results of changes made to only one input variable or data factor while holding all other variables constant (Encyclopedia, 2004).The small changes to this input variable may result in dramatic changes to the results. This is called the high sensitivity to this input variable. If a change in this input variable produces little overall change in the results, thus it has a low sensitivity. As a result, sensitivity analysis allows the decision maker to determine which input variables have the most impact on the organization's bottom line. It allows the decision maker to determine the key variables in a decision. It can also be used to determine the margin of error in decisions involving those variables (Ian, et al., pg. 91).There are some ways that the sensitivity analysis can be performed. They are spreadsheet package, financial modeling language, decision support package, and add-in to spreadsheet package.The least efficient and most common approach is to use a spreadsheet package to repeat the scenario (what-if analysis) process over and over again. This process is repeated for a range of values for that input variable, and the results recorded. This would enable the user to identify those input variable that cause the largest change in the output result, which is the highest sensitivity or critical variables in that decision situation (Ian, et al., pg. 91).Excel's Data Table allows the decision maker to vary one or two input variables to identify the effect that this change has one or more formulas (Ian, et al., pg. 92). Excel support one and two variable tables. The advantage of a Data Table is that user can view several variations of results at the same time (Fox and Metzelaar, pg. 355). User can see the effect of changing an input value on the result returned by a formula as soon as user enters a new input value in the cell that feeds into the...

Find Another Essay On How financial modelling techniques can be used by CPA?

How can Philip Larkin's poetry be used to address the marginal or neglected?

1854 words - 7 pages and tradition. He represents the ‘name’ as a disposable object, commenting on the preserving of values and the loss of them. The new consumerist age of ‘disposal’ can be seen to be referred to here. He creates a sense of an unused, neglected old self and a past identity that has been lost through marriage. The woman’s maiden name has been used and neglected, being “a phrase applicable to no one” (l.8).The use of

The Way Real Property Can Be Used

1994 words - 8 pages Real Estate is a tangible asset. You can see and touch it. Unlike shares, if your investment is performing badly you can do something about it, by upgrading the property or perhaps get a better tenant. Requires Maintenance Fixed property is tangible, therefore, it requires maintenance. The property needs to be painted, lawn needs to cut or sometimes some emergency repairs are needed such as an electrical faults or plumbing repairs

How has your understanding of the consequences of change been shaped by the techniques used by various composers?

1772 words - 7 pages How has your understanding of the consequences of change been shaped by the techniques used by various composers? Discuss in reference to Mark Leigh's "Secrets and Lies", Frances Hodgson Burnett's "The Secret Garden" and Bruce Springstein's "The River"Change is a constant and inevitable process which manifests itself in many different aspects of life, whether it is physical, emotional or psychological. The effects of change render an impact upon

How has your understanding of the consequences of change been shaped by the techniques used by various authors?

1735 words - 7 pages vindictive character is from subsisting as a victim of her own loneliness.The other character of the novel that undergoes significant change is Master Colin Craven, a weak bedridden child who is treated as an invalid all his life, unable to be looked upon by his ashamed father. Colin is imperious and certain he is going to die and this is not until his meeting with Mary does she maintain that Colin's illness is only in his mind. Mary's boldness

how can aggression be reduced?

2099 words - 8 pages according to operant conditioning, punishment weakens behaviour.A separate aspect of operant conditioning could also be used in conjunction with these 3 aspects is a token economy, what this relates to is a token that can either be gained or taken away depending on the child behaviour and then traded in for different treats or privileges depending on how many they have at the end of each week. This can be seen in schools when teachers have a star

How can Art be Defined

1304 words - 5 pages The search for a definition of Art has been subject of a complex philosophical reflection incorporated; however, within different thematics because the very idea of Art is changeable as it relies on the culture and the tradition of a particular epoch. Etymologically, the word Aesthetics derives from the Greek àisthesis, which means perception by the senses. It used to refer as the study of the world of perceptions as the doctrine aimed to

?Literary Techniques Used in Hamlet?, by William Shakespeare

1086 words - 4 pages imagery it is made clear to the audience how Hamlet’s purpose in life had gone and how he had lost the will to live in a world that holds nothing but further depression. The reader’s response in result is therefore influenced by hamlets true feelings and emotions portrayed through the technique of imagery. Often in this text there is a dual understanding that connects both the royal family to the state of Denmark. This strong association can be

Persuasive Techniques Used by Michael Moore and Niccoló Machiavelli

1272 words - 5 pages examples of the “behind the scenes” into the political world and cites all the events back to how and why it is ruining our country and what we can do to prevent and/or help the cause. Machiavelli’s piece also was a form of persuasion and rhetoric’s, using all three appeals as well. “The Qualities of the Prince” is a piece by Machiavelli in which he is trying to explain how a prince should act and what traits they should possess to be a successful

Literary Techniques Used by Fyodor Dostoyevsky in Crime and Punishment

2039 words - 8 pages A Study of the literary techniques used by Fyodor Dostoyevsky in Crime and Punishment to convey the downfall and subsequent rise of the main character. "Crime and Punishment" by Fyodor Dostoyevsky is the story of a young student Raskolnikov and his need to murder an old woman to prove one of his many philosophies. The book begins with the murder, but the primary focus is on his reasoning and reactions before and after the act. It is

The Narrative Techniques Used by Hitchcock in Rear Window

1348 words - 5 pages The Narrative Techniques Used by Hitchcock in Rear Window L.B. Jeffries is a high-class magazine photographer for what seems to be a worldwide publication. In Alfred Hitchcock's 'Rear Window', he is a temporarily wheelchair-bound man and his voyeuristic side appears later on in the film. 'Rear Window' depicts a 20th century New York in which fraudsters, murderers and salesmen all live alongside each other. The story

How Paint Used To Be Made

1426 words - 6 pages other defects will be detected. · Once the paint has passed all the tests the paint can continue on to packaging. · Latex paint is 60% water which corrodes metal, so the tin cans are lined with an anti-rust coating. · The cans run over a glue applicator, get labelled, get filled, and move on to the lid press. How Paint used to be made Cave paintings drawn with charcoal may have been made by early homo-sapiens as long as 40,000 years ago

Similar Essays

How Statistics Can Be Used And Abused

684 words - 3 pages Statistics can be very helpful in providing interpretation of reality but also can be used to distort our understanding. Discuss some of the ways in which statistics can be used or misused in different Areas of Knowledge to assist and mislead us, and how we can determine whether to accept the statistical evidence that is present to us.When you turn on the news, what do you hear? 1 in 10 people in South Africa have AIDS , Unemployment Reaches New

How Can Stock Index Futures Be Used For Hedging?

1708 words - 7 pages SID: 2399092 351FIN How can stock index futures be used for hedging?the nature of stock index futuresAs a financial instrument which is used to reduce risk for invstors, stock index futures have some characteristics:1 Stock index futures contracts are based on the share index.2 Stock index futures contracts should stand for those indexes which are authoritative as well as representative.3 The price of Stock index futures contracts is denoted by

Explain How Solar Power Can Be Used To Produce Electricity

1395 words - 6 pages With increasing the demand of consuming the energy to supply life’s needs, the focus of renewable energy has been increased since this energy does not have negative impacts on the environment. By applying the new technologies of solar energy, diversifying the world’s energy supply, minimizing the reliance on fossil fuel and reducing the air pollution can be made. Solar power is defined as ‘’ energy in the form of electromagnetic radiation

Discuss How Recombinant Dna Techniques May Be Used To Correct A Point Mutation.

677 words - 3 pages serves as an extremely stable domain is attached to one side of the fragment, then mutations at any sites within certain types of sequence context can be detected by DGGE. The fact is that nearly all single base substitutions in DNA fragments joined to a GC-clamp can be detected by denaturing gradient gel electrophoresis. This extra sequence of extremely high stability can be conveniently attached to the target sequence of PCR by using one primer