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Identify user groups of financial statements and explain what information they are likely to want from them?
Wiki User
∙ 9y ago
One user group for financial statements is external investors. They use the documents to determine whether the business is profitable. Internally, managers look at financial documents to determine whether their department is profitable.
Wiki User
∙ 9y ago
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Discuss and explain the impact of finance on the financial statements?
Businesses regularly put out financial statements such as the income statement, balance sheet and statement of cash flows. When these financial statements are released, they can have large impacts on the business and on the investors of the company. Therefore, it is critical for the business to ensure that the information the statements present is correct. thank you Swarup Dey
Explain why a regulatory framework is necessary?
Regulatory framework is necessary for the preparation of Financial statements. - Financial statements are used by investors, lenders and customers (to name but few) and must be helpful for those stakeholders for making decisions. - Statements should be comparable and provide basic information.
Explain how fundamental accounting concepts are used in preparing financial statements?
explain using various example, how the major accounting concepts are used in preparing financial statement??
Explain the reasons for using ratios as a means of explaining accounting information?
Ratios are used in accounting to provide a comparative analysis of financial data. They allow for easy interpretation and comparison of numbers across different time periods or between companies. Ratios also help identify trends, assess financial health, and identify areas of strength or weakness within a company. Overall, ratios provide a simplified way of conveying complex financial information.
What are the four financial statements explain their basic content and why it is important that the statements are prepared?
balance sheet,income statement,cash flow statement,retained earnings
Why is it necessary to develop a definitional framework for the basic elements of accounting?
. According to the FASB conceptual framework, the objective of financial reporting for business enterprises is based on the needs of the users of financial statements. Explain the level of sophistication that the Board assumes about the users of financial statements
Why are financial statements useful to employees?
Advantages of Financial StatementsGoals financial statements are supposed to accomplish. The intent of financial statements is to provide information useful in economic decision making. In particular, the data should be useful in making investment and credit decisions. Financial statements should provide a reliable indication of a company's financial position, operating results, and changes in financial position. Also, statement components and categories should aid in decisions. Financial statements may provide information in addition to that specified by authoritative requirements and regulatory groups. Inasmuch as management knows the most about the business, it is encouraged to identify certain circumstances and explain their financial effects on the enterprise.
Explain management information system taking university as an example?
financial accounting system
Explain why information collection in financial market is subject to the free rider problem?
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Do the terms financial reporting and financial statement mean the same thing explain?
No they do not mean the same thing. Financial reporting is the more indept report. A financial statment are a subset of the total information in the financial report.
Explain why is it important for corporations to publish their financial information regularly?
you go do a female dog if you know what i mean ;)
Is it possible to prepare financial statements without the help of trial balance under accounting for incomplete records You need to give your view point along with proper justification and explain?
no
