It refers to the process of the critical examination of the financial information contained in the financial statements in order to understand and make decisions regarding the operations of the firm. This statement is basically a study of relationship among various financial facts and figures as given in a set of financial statements. The complex …
Financial statements (or financial reports) are formal records of the financial activities of a business, person, or other entity. In other words, financial statements are records that provide an indication of an individual’s, organization’s, or business’ financial status. Purpose of Financial Statements The purpose of a financial statement is to enable a business to establish …
Financial statements are the financial information presented in concise form and the financial information is the information relating to the financial position of the firm. Financial statements are prepared by the firm because of two main reasons: 1. To communicate with different parties about the financial position of the firm. These other parties include shareholders, …