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PRINCIPLES OF ACCOUNTING SOLVED ASSIGNMENT # 02 COURSE CODES 438
Solved assignment 2 for course or subject code 438 principles of accounting for the students of b.com level. The complete assignment is being uploaded in hard form, you just download or save copy of assignment images and zoom it for more visible.
Financial statement analysis involved the identification of the following item for a company’s financial statement over a series of reporting periods.
Create trend lines for key item in the financial statement over multiple time periods, to see how the company is performing, typical trend lines are for revenues the gross margin, net profit, cash, accounts receivable and debit.
An array of ratio are available for the decreasing the relationship between the size of various accounts in the financial statement for example you can calculate a company’s quick ratio to estimate its ability to pay its immediate liabilities.
Anyone who has lent funds to a company is the interested in its ability to pay book the dept and so will focus on various cash flow measures.
Both current and prospective investors examine financial statement to learn about a company ability to continue issuing dividends or to generate cash flow or to continue growing.
The company controller prepares on ongoing analysis of the company’s financial results, particularly in relation to a number of operational metrics that are not seen by outside entities.
If a company is publically held, its financial statements are examined by the Securities and Exchange Commission to see if its statements conform to the various accounting standards and the rules of the SEC.
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