How you would consider financial analysis. What are some of
Not what you're looking for?
How you would consider financial analysis. What are some of the characteristics of income statement, balance sheet and cash flow statement - from the perspective of the story told by each statement?
How does accrual accounting come into play in statements?
It is true that certain 'sets' of ratios tend to be used more by credit analysts, others by financial managers.
Purchase this Solution
Solution Summary
How you would consider financial analysis. What are some of the characteristics of income statement, balance sheet and cash flow statement - from the perspective of the story told by each statement?
How does accrual accounting come into play in statements?
It is true that certain 'sets' of ratios tend to be used more by credit analysts, others by financial managers.
Solution Preview
How you would consider financial analysis.
When conducting a financial analysis, it is to analyze the company's financial statements. By doing so, the analyst is able to determine three different things: 1) the viability of a business, which tells the analyst if the business has a reasonable chance of growing as expected along a normal rate of growth. 2) It shows the analyst, based on a preliminary analysis, the rate of profitability of the business. If profits are showing that they are constant or (hopefully) improving, the company is considered to be a sound investment for investors, creditors, and others with an interest in the business. The financial analysis also tells the analyst if the company has stability. A financial analysis will show if the operations are at a point where stability is reasonably certain, or do the financial statements show, through a comprehensive financial analysis, that the company is unstable and/or on the verge of decline.
What are some of the characteristics of income statement, balance sheet and cash flow statement - from the perspective of the story told by each statement?
If they ...
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.