Project
* FINANCIAL ANALYSIS * Introduction:
You already know the preparation of financial statements such as balance sheet and profit and loss account for the profitable and nonprofit able organizations. When the financial statement prepared different people interested in analyzing the financial statements by using different methods. These are comparative statement, Common size statement, Ratio analysis, Trend analysis, Fund flow analysis, etc. This procedure gives a important link between the accounting figure for comparison. * Purpose: * It tells us the importance, requirement and function of financial statement analysis * It also tells us people are investor interested in financial statement analysis. * It show the different technique and tools use in financial statement analysis. * Financial Statement Analysis:
Financial activity is major activity of the business. Every business prepares statement to validate the financial situation of the business this is called financial statements. It’s main purpose to prepare it for decision making. The data in the financial statement is not sufficiently useful for making conclusion. Therefore it is necessary to make effective analysis and explanation of financial statements.
Analysis means productive relationship between different elements of the two financial statements with each other in order to give conclusion. Here financial statement required two statements. * Balance Sheet * Income Statements
The income statement and balance sheet are constructing at the closing stages of specified time period. These two statements give the profitability and financial position of the business.
Analysis of financial statement means to know the performance and the competency of an organization. So it is very important to measure the organization operations and success and its future position.
There are the following objectives of financial analysis: * Measuring the profitability: People do
You already know the preparation of financial statements such as balance sheet and profit and loss account for the profitable and nonprofit able organizations. When the financial statement prepared different people interested in analyzing the financial statements by using different methods. These are comparative statement, Common size statement, Ratio analysis, Trend analysis, Fund flow analysis, etc. This procedure gives a important link between the accounting figure for comparison. * Purpose: * It tells us the importance, requirement and function of financial statement analysis * It also tells us people are investor interested in financial statement analysis. * It show the different technique and tools use in financial statement analysis. * Financial Statement Analysis:
Financial activity is major activity of the business. Every business prepares statement to validate the financial situation of the business this is called financial statements. It’s main purpose to prepare it for decision making. The data in the financial statement is not sufficiently useful for making conclusion. Therefore it is necessary to make effective analysis and explanation of financial statements.
Analysis means productive relationship between different elements of the two financial statements with each other in order to give conclusion. Here financial statement required two statements. * Balance Sheet * Income Statements
The income statement and balance sheet are constructing at the closing stages of specified time period. These two statements give the profitability and financial position of the business.
Analysis of financial statement means to know the performance and the competency of an organization. So it is very important to measure the organization operations and success and its future position.
There are the following objectives of financial analysis: * Measuring the profitability: People do