Objectives of financial statement analysis, Accounting Basics

Assignment Help:

OBJECTIVES OF FINANCIAL STATEMENT ANALYSIS

Financial Statements are analyzed by dissimilar users for dissimilar purposes. Some of the purposes are as under-

1. To recognize and approximation the present and potential profitability/earning ability of the enterprise

2. To aid in economic decision making

3. To estimate and understand the financial performance and position of the concern

4. To calculate the effectiveness of business operations

5. To compute and analyze the different financial ratios and flow of funds/cash

6. To recognize areas of mismanagement and possible danger so that corrective actions can be taken

7. To resolve the preservation of financial leverage by the project

8. To establish the movement of inventory in the enterprise

9. To recognize diversion of funds etc.


Related Discussions:- Objectives of financial statement analysis

Trial balance help, when creating a trial balance, which account balances c...

when creating a trial balance, which account balances carry over from previous months

Cash $10, Cash $10,000 Accounts Payable $7,000 Accounts Receivable $6,400...

Cash $10,000 Accounts Payable $7,000 Accounts Receivable $6,400 Mortgage Payable $65,000 Supplies $1,500 Long-term Debt $36,000 Building $150,000 Notes Payable $9,000 Equip

Which brand insulating oil tester is the best, GDYJ-503 is developed accord...

GDYJ-503 is developed according to the national standard GB-86 Insulating Oil Dielectric Strength Testing Method .The tester can test three cups of oil at the similar time. LCD scr

Traditional tax accounting job, The career paths outlined above don't nearl...

The career paths outlined above don't nearly cover all of the many professional options available to tax specialists. For instance are you concerned that a traditional tax accounti

What is owner equity, What is OWNER'S EQUITY Difference between Liabili...

What is OWNER'S EQUITY Difference between Liabilities and Assets is Owner's Equity. The can also be known as capital, proprietorship, or net worth.

What is trial balance, What is TRIAL BALANCE This statement is a listin...

What is TRIAL BALANCE This statement is a listing on a certain date which demonstrates all accounts and their balances. This generally happen at the end of the month however it

What were the equivalent units for conversion costs, Cargin Company uses th...

Cargin Company uses the FIFO method in its process costing system. The Assembly Department started the month with 15,000 units in its beginning work in process inventory that were

Common rule of thumb in business, 80 - 20 rule - A common rule of thumb in ...

80 - 20 rule - A common rule of thumb in business which says that 20% of the items produce80% of the action -- 20% of product line produces 80% of the sales, 20 percent of thecusto

The accounting records of nu-tonics inc., The accounting records of Nu-toni...

The accounting records of Nu-tonics Inc., include the following information for the year ended December 31, 2013:  Materials Inventory as at 1 January 2013 $ 20,000  Materials

Microsoft Excel, How do I do case problem level 1 for chapter 3 of succeedi...

How do I do case problem level 1 for chapter 3 of succeeding in business with Microsoft excel 2013?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd