Explore BrainMass

Explore BrainMass

    Necessary Steps with Evaluating the Use of Financial Accounting

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please assist in providing information for a paper addressing the necessary steps involved with evaluating the use of financial accounting information in making informed and ethical business decisions using comparative analysis and financial ratios.

    Must use APA and references.

    © BrainMass Inc. brainmass.com October 4, 2022, 4:57 pm ad1c9bdddf
    https://brainmass.com/business/management-accounting/necessary-steps-evaluating-financial-accounting-390993

    Solution Preview

    The steps involved with evaluating the use of financial accounting information in making informed and ethical business decisions using comparative analysis and ratio analysis.
    The first step in making ethical business decisions is to take the financial statements of the company for the current year and also for the previous year(s). The financial statements include Balance sheet, income statement, statement of changes in the shareholders' equity and cash flow statement. For example, if the shareholder wants to invest in additional shares of the company, the shareholder would see the profit earned by the company and also return on equity capital. For that the earnings after tax depicted in the income statement and the amount of shareholders' equity depicted in the balance sheet need to be taken. If the return on equity is as per expectations, he will proceed to invest in ...

    Solution Summary

    The solution provides the necessary steps with evaluating the use of financial accounting.

    $2.49

    ADVERTISEMENT