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The goal in analyzing financial statements is to assess a company's past performance, current financial position; and to make predictions about the company's future performance. This directly relates to stocks, bonds, and other financial instruments.

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Q: What is the purpose of a financial statement analysis?
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Briefly discuss the primary limitations of ratio analysis as a technique of financial statement analysis?

discuss objective and limitation of time series analysis


What do you understand by analysis and interpretation of financial statement?

Analysis of financial statement means using the data in the financial statements to perform further calculations and analysis, like ratio analysis, trend analysis, industry comparison, horizontal and vertical analysis, etc. Analysis is useful to understand historical transactions and also to estimate future prospects. Interpretation of financial statement is basically is drawing meaningful conclusions and judgment based on the results of basic or detailed analysis. Example: Profitability analysis shows that the company has made profit for the last 5 years consistently. Interpretation of this analysis will lead to the conclusion that the probability of the company produce profits in next year is high.


Define the purpose of accounting and identify the four basic financial statements?

The purpose of accounting is provide information to the users like investors ,financial institutions and to other clients. The four basic financial statements are balance sheet,income statement,cash flow,statement of retained earning.


What includes the horizontal analysis of comparative statement?

In Horizontal analysis of statements companies tries to compare its financial statements with competitors to see that how well or bad they have performed.


Why you do the Financial analysis?

financial analysis includes

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Why do you say that financial statement analysis is management by exception?

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What ratio or other financial statement analysis technique will you adopt for analysis of liquidity of a firm?

What ratio or other financial statement analysis technique will you adopt for this.


How do you make financial statement analysis?

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Hoe does the concept of consistency aid in the analysis of financial statement?

How does the concept of consistency aid in the analysis of financial statements? What type of accounting disclosure is required if this concept is not applied?


Why do creditors use financial statement analysis?

Creditors use finanical statement analysis because it makes it easier for them.


What are Three of the most common tools of financial analysis are?

Commonly used tools of financial analysis are: Comparative statements Common size statements Trend analysis Ratio analysis Funds flow analysis Cash flow analysis. According to usage and requirements, comparative financial statements, common size statements, and vertical analysis are some of the most popular financial tools. Unlock the power of cash flow with direct integration with banks to power business insights with Paci.ai


Give some topic relating to summer project in finance?

Financial statement analysis of a company.Loan procedure in a bankStudying the dividend policy of a companyRatio analysis of a company (although it is covered under Financial statement analysis)study of mutual fundscash management in an organization.


what is financial statement analysis and interpretataion?

It is the process of understanding a companys finacial health,profitability and financial position.this includes 1.understanding the company's financial statement and related footnotes analyzing trends in a financial statements over time comparing with competitors' benchmarks identifying the risk and opportunities based on financial analysis


Briefly discuss the primary limitations of ratio analysis as a technique of financial statement analysis?

discuss objective and limitation of time series analysis


What do you understand by analysis and interpretation of financial statement?

Analysis of financial statement means using the data in the financial statements to perform further calculations and analysis, like ratio analysis, trend analysis, industry comparison, horizontal and vertical analysis, etc. Analysis is useful to understand historical transactions and also to estimate future prospects. Interpretation of financial statement is basically is drawing meaningful conclusions and judgment based on the results of basic or detailed analysis. Example: Profitability analysis shows that the company has made profit for the last 5 years consistently. Interpretation of this analysis will lead to the conclusion that the probability of the company produce profits in next year is high.


Scope of study of financial statement analysis?

"SCOPE" it is the thing that only can be made by person who appeared. it is depend upon his performance and activity,and his interest. Financial Accounting is the very easy to learn, understand and can be make everyone scope in this.