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All publicly traded companies and large private entities prepare financial statements periodically. The purpose of creating financial statements is to capture a company's financial position for a given period. This allows users of financial information to analyze and compare the health of one company to another. Financial statements provide assessment of a company's profitability, liquidity and operational efficiency. As a result, there are a number of reasons why managers analyze financial statements.
And in my own words, all managers should know the P/L of a period of time, to help understand the needs of their business, the profit or loss and it's effects upon the business ( it may be on a permanent loss therefor it should make the necessary improvements/cuts) . Most managers wish in general to see where they stand with, if the business is profitable, if they need to stop taking some risks, or make new investments, or maybe let go some employees.
Benny Wuckert
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What financial statement would you analyze to determine if a company distributed any of its profits to its shareholders?
What financial statement would you analyze to determine if a company distributed any of its profits to its shareholders?
What are the Objectives of common size financial statement?
A common size financial statement measure the relationship of different items of financial statement with a common variable (net sales in case of common size income statement). I helps to analyze business performance effectively. It is especially useful in comparing various variables of companies of different sizes and scopes.
Can you consider notes to financial statement to be a financial statement?
Notes to financial statement can be considered to be a financial statement since they report the details and additional information that are left out.
Is income statement same as financial statement?
no. income statement is a only a statement in financial statements.
What does it mean to analyze and interpret financial information?
When an accountant or a manager analyzes financial reports they are doing so to make sure the business is working towards their goals. Flaws in their interpretation will ultimately affect whether the business is profitable.
How is the job of a financial manager in a nonprofit organization different from that of a financial manager with a profitseeking firm?
How is the job of a financial manager in a nonprofit organization different from that of a financial manager with a profitseeking firmRead more: How_is_the_job_of_a_financial_manager_in_a_nonprofit_organization_different_from_that_of_a_financial_manager_with_a_profitseeking_firm
Modern financial manager vs traditional financial manager?
The modern financial manager uses computer technology to develop strategies. The traditional financial manager uses research and evaluation to develop strategies.
What is the task of the international financial manager?
task of the international financial manager
Where can one find financial statement software?
CNet is a resource for a variety of downloads, including financial statement software downloads. This software can also be found at Financial Statement Pro and My Financial Statement.
When was Certified Financial Manager created?
Certified Financial Manager was created in 2006.
When did Certified Financial Manager end?
Certified Financial Manager ended in 2007.
When was Financial Risk Manager created?
Financial Risk Manager was created in 1997.
