Question and answer
Explain how the financial statements can be used to evaluate a firm's performance after cash-oriented business activities have been recorded.
How to Complete a Ratio Analysis on Financial Statements Any successful business owner is constantly evaluating the performance of his or her company. Ratios are vital tools to evaluate the financial condition of the company. [ By certain ratios, you can analyze profitability, liquidity and efficiency. Although ratio analysis is used to report on past performances, they can also provide
certain indications of potential problem areas. Ratio analysis can also evaluate how your company compares to other businesses. What Kind of Analysis Can I Do for My Financial Statements? Understanding financial statements and the type of information that can be gathered from them may significantly help you in the success of your business. A wealth of data are available on each of the statements, and combining that with the analytical tools available will help you understand the areas you should focus on to improve your results. Three financial statements and a ratio analysis are most important to understanding your business. What Information Can Be Derived From the Analysis of Financial Statements? A company's financial statements offer investors a look under the hood so they can evaluate whether or not the company is being managed properly, earning money and does not have too much debt to remain viable into the future. Financial statements tell you how the company earns and spends its cash, how many asset and liabilities it has and how much equity the shareholders own. Financial Statement Audit Plan Analysis Many business owners associate audits with suspicions of dishonesty. Auditors serve multiple purposes in the business world, however. By analyzing financial statements, auditors can predict how well a business is likely to do over the next couple of years and suggest changes to the financial plan if necessary, as well as catch and correct misstatements. What Are Stockholder Equities? The term "stockholder equities" is technically incorrect; a more accurate formulation is "stockholders' equity" or "shareholders' equity accounts." Equity represents the contribution an investor makes in a company's activities. ]
Expert answered|thederby|Points 1389|
Question
Asked 9/3/2012 6:36:29 PM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
Are the directors liable for the drop in stock prices if the directors invested in the firm's growth in negligent reliance on its officers faulty financial reports?
Weegy: The directors of the company in any event if found negligent in taking a decision that would result a negative consequences to the company will held them liable.But if in any case as to the investors part to loan or not to take a loan will remain a [ [ [ self taking action. ] ] ] (More)
Question
Expert Answered
Asked 9/3/2012 4:07:40 PM
0 Answers/Comments
Are directors liable for the drop in stock prices due to investing in a faulty financial report
Weegy: Under Sarbarnes-Oxley Act of 2002, the Directors and the Corporate Officers may be liable for their actions in this case. The US Congress passed the Sarbanes-Oxley Act in the wake of a myriad of corporate scandals. [ What these scandals had in common was skewed reporting of selected financial transactions. For instance, companies such as Enron, WorldCom and Tyco covered up or misrepresented a variety of questionable transactions, resulting in huge losses to stakeholders and a crisis in investor confidence. ] (More)
Question
Expert Answered
Asked 9/3/2012 4:13:20 PM
0 Answers/Comments
17,411,142 questions answered
Popular Conversations
All of the following physical reactions occur when our ...
Weegy: What are your choices? User: A. dilating pupils B. increasing heartbeat C. increasing digestion D. increasing ...
9/17/2014 12:53:07 AM| 5 Answers
Which of the following areas would most likely have the deepest layer ...
Weegy: Which of the following areas would most likely have the deepest layer of topsoil? b. beach User: Which layer ...
9/17/2014 1:00:32 AM| 4 Answers
Is the underlined word a predicate nominative or a predicate ...
Weegy: "The workers remained calm during the fire drill." In this sentence the word "calm" is the predicate adjective. ...
9/17/2014 2:01:58 PM| 3 Answers
. Command is: A. Assumed by the individual who is the highest ranking ...
Weegy: Command is Directing, ordering, or controlling by virtue of explicit statutory, regulatory, or delegated ...
9/17/2014 1:35:53 AM| 2 Answers
When communicating, ICS requires the use of
Weegy: The Incident Command System (ICS) is "a systematic tool used for the command, control, and coordination of ...
9/17/2014 1:36:41 AM| 2 Answers
chevorlet
Weegy: Find which Chevy van and you will find what the mpg is. User: chevy silverado
9/17/2014 3:00:05 PM| 2 Answers
What court case upheld the use of implied powers by Congress in any ...
Weegy: The implied powers doctrine, upheld in McCulloch v. Maryland, gives Congress the power to create a national bank ...
9/17/2014 2:06:27 PM| 2 Answers
In "Paul's Case," the story suggests that Paul's "dark corner" ...
Weegy: In "Paul's Case," the story suggests that Paul's "dark corner" represents his? contempt for authorityWrong the ...
9/17/2014 1:43:59 PM| 2 Answers
The biggest cause of foodborne illness is
Weegy: Foodborne illness (also foodborne disease and colloquially referred to as food poisoning)[1] is any illness ...
9/17/2014 4:32:41 PM| 2 Answers
The Three-Fifths Compromise dealt with the issue ...
Weegy: The Three-Fifths Compromise dealt with the issue of taxation. User: The convention decided to make a ...
9/17/2014 4:38:35 PM| 2 Answers
Weegy Stuff
S
R
L
1
1
P
C
1
P
1
1
L
P
C
P
C
1
P
C
L
P
C
1
P
C
P
C
P
C
L
Points 1899 [Total 26298]| Ratings 4| Comments 1859| Invitations 0|Offline
S
L
1
L
P
C
1
Points 1717 [Total 8248]| Ratings 8| Comments 1637| Invitations 0|Offline
S
L
1
1
1
1
L
1
L
Points 1377 [Total 11157]| Ratings 0| Comments 1377| Invitations 0|Offline
S
L
P
C
L
P
C
P
C
L
P
C
P
C
P
C
Points 1318 [Total 18490]| Ratings 3| Comments 1288| Invitations 0|Offline
S
L
C
P
C
1
L
L
P
C
1
Points 1302 [Total 17241]| Ratings 10| Comments 1202| Invitations 0|Offline
S
1
L
1
L
P
P
L
Points 512 [Total 11758]| Ratings 0| Comments 512| Invitations 0|Offline
S
L
P
C
P
C
1
L
P
C
L
P
C
P
C
P
C
P
C
Points 498 [Total 19029]| Ratings 0| Comments 498| Invitations 0|Offline
S
L
Points 426 [Total 1096]| Ratings 0| Comments 426| Invitations 0|Offline
S
1
L
L
Points 386 [Total 5510]| Ratings 4| Comments 346| Invitations 0|Online
S
P
C
L
P
L
1
Points 45 [Total 6102]| Ratings 1| Comments 35| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.