Past financial statements help in understanding future?

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• Abel Athletics Financial Forecast

  It will surely help you to develop a better understanding of the topic discussed and enhance your knowledge. At the end, I wish you happy learning.

• Accounting & relevance in actual organizational perspectives

  Thus, a person can contribute to the organization's decision making process with the help of his/ her accounting knowledge by providing objective assessment of the past performance and via forecasting information related to the future.

• Financial Statement Reading

  Understanding these statements is crucial since they all tell you what's happened in the past. But more important from a management perspective is what's going to happen in the future.

• Accrual basis to help organizations evaluate performanceaAccrual Basis to Help Organizations Evaluate Performance

  Further, it is difficult to forecast future net income using the past as a reference because of the distortions that may be present.

• Financial Statement Analysis and Decision Making

  Secondly, there are a lot of financial analysis tools that can aide managers in understanding the implications of the information presented in the financial statements. An example of these tools is ratio analysis.

• Financial Statements

  The information of the income statements assist the management team in finding out the enterprises past functioning and indicate future performance.

• Tools for analyzing financial statements

  Managers should have a financial understanding of their organization to take the decisions in a prudent manner. Financial understanding will enhance the commercial knowledge and will also get the relevant inputs for taking decision making.

• Budgets and Performance reports, Ethics in Accounting

  These forecasts are based on knowledge of past performance, understanding of market trends, seasonal factors, competition, etc. With these in mine, one can make decisions regarding future business activities such as investments.

• Four Major Financial Statement Limitations

  Financial statements are based on a certain time period in the past. The financial statements ended on December 31, 2013 or some other date and it is now March 12, 2014.