1. What is an example of liquidity's importance in analysis of financial statements? Explain its importance from the viewpoint of more than one type of user.
3. Are fixed assets potentially includable in current assets? Explain. If your answer is yes, describe situations where inclusion is possible.
4. Describe the process and purpose through which Moody's Corporation/Moody's Investors Service conducts financial research and analysis on commercial and government entities.© BrainMass Inc. brainmass.com October 16, 2018, 11:15 pm ad1c9bdddf
1. Liquidity measures an organization's ability to pay its short term obligations as they come due. This indicator is very important for suppliers as an assessment tool on whether they can collect what is due them at the end of the credit term. This is also important for the company's employees as liquidity tells whether it has enough money to pay the company's payroll. The company's liquidity is also important to other providers of capital such as banks especially those which the company has an existing credit line. If the liquidity of the company is very low, then it might mean an extension of the credit lines amount.
2. Working capital, by ...
This response defines various accounting terms.
What is the purpose of financial statement analysis?
What is the purpose of financial statement analysis? What are some of the tools that we can use to analyze financial performance? What should we use to benchmark our performance? Why? What are the different types of financial ratios used to analyze financial performance? Are some ratios more important than others? Why? Which ratios are important to creditors? Which to investors? Which to managers? Why?View Full Posting Details