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

Explain about business entity concept, Q. Explain about business entity con...

Q. Explain about business entity concept? A business entity perhaps made up of several different legal entities. For example a large business such as General Motors Corporation

Invetory, beginning inventory,purchase,and sales data for commodity A are a...

beginning inventory,purchase,and sales data for commodity A are as follows november 1 inventory 1500units @k20.00 2 sold 5000unit @ 40.00 12 purchase 10000 units @22

International recommendations on how IAS 40 can be improved, I need an expe...

I need an experts advice, I''m nearly finished with my Dissertation on IAS 40 - but I need some more guidance on issues with the standard and how it can be improved

Calculate the profit using balance sheet, Part 1 (a) Name and describe ...

Part 1 (a) Name and describe the three concepts that form the basis of double entry bookkeeping, and explain how they form the basis of double entry bookkeeping. (b) How doe

Wings inc., Wings Inc., a software development firm, has stock outstanding ...

Wings Inc., a software development firm, has stock outstanding as follows: 25,000 shares of cumulative 1%, preferred stock of $40 par, and 50,000 shares of $120 par common. Durin

Define tds and sale tax retrun?, TDS (tax deducted at sources) .The person ...

TDS (tax deducted at sources) .The person whereas making payments of income,covered by the scheme are responsible to deducted TDS and deposite the similar in goverment treasury  wi

Explain weighted-average inventory, Q. Explain Weighted-average inventory? ...

Q. Explain Weighted-average inventory? Weighted-average: Ensuing inventory is priced using a weighted-average unit cost. In perpetual inventory procedure a new weighted-average

Draw a stem-and-leaf plot for the data set, Draw a stem-and-leaf plot for t...

Draw a stem-and-leaf plot for the data set. (Enter numbers from smallest to largest separated by spaces. Enter NONE for stems with no values.) Data set A: The annual wages of emp

Accounting for investments, Contain the relevant authoritative literature o...

Contain the relevant authoritative literature on accounting for investments in held-to-maturity securities using the FASB's Codification Research System. What is the specific citat

What is articulate, Q. What is Articulate? The fundamental accounting c...

Q. What is Articulate? The fundamental accounting concept of the double-entry method of recording transactions. Under the double-entry approach each transaction has a two-sided

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