What is the purpose and importance of financial analysis

Reference no: EM133207054

Assignment - System Accounting Discussion

Q1. A company's financial statements consist of the balance sheet, income statement, and statement of cash flows. Describe what each statement tells us and their limitations.

Q2. What is the purpose and importance of financial analysis? What are financial ratios? Describe the "five-question approach" to using financial ratios. What are the limitations of financial ratio analysis? If we divide users of ratios into short-term lenders, long-term lenders, and stockholders, in which ratios would each group be most interested, and for what reasons?

Reference no: EM133207054

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