Why are Profit Reconciliation Accounts prepared? The very purpose of maintaining financial accounts is the ascertainment of profit or loss for a specific period and also to know
Tools or Techniques of Financial Statement Analysis Important tools or techniques of financial statement analysis are as follows. Comparative Statement or Comparative Financial and Operating Statements. Common Size
Types of financial statement analysis Financial statements analysis are classified according to their objectives, Materials used and Modus operandi. Financial statement analysis, according to objectives are further subdivided
Procedure of Financial Statement Analysis A common procedure is followed for financial statement analysis. Such procedure is briefly explained below. 1. Objective of Analysis: The objective of analysis
The mere preparation of Profit and Loss Account and Balance Sheet does not give more information for managerial decision making. Hence, there is a need for analyzing the
Limitations of financial statements Most of the limitations are due to recorded facts, accounting rules and conventions and personal judgements. If proper care is taken and specifically prepare
Functions and Importance of financial statements. The following are some of the functions and importance of financial statements. 1. Importance of Financial Statements to Management: Management needs the
Essentials of Good Financial Statements A proper analysis and interpretation of financial statements enables the interested parties to judge the profitability and financial strength of the business. Hence,
Parties interested in Financial Statements There are many people using the financial statements. They are assessing the financial statements in terms of profitability, liquidity and solvency. Some of
Limitations of Cash Flow Statements- Cash flow statement is used as a tool of financial statement analysis. Even though, cash flow statement suffers from some limitations. Such limitations