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Financial Statement Analysis and Decision Making

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Financial statement analysis is a critical link between the generation of accounting data and the proper usage of the information in decision making.

Do the managers understand the information and the implications of the numbers presented in the financial statements? Generalization about How well are we doing?

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This solution discusses financial statement analysis and decision making.

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I do believe that managers today understand the information and the implications of the numbers presented in the financial statements. First, a majority of managers today have post graduate educations such as MBAs. Given this additional educational background, managers have the requisite ...

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