What interested parties may perform financial statement analyses of a company and for what purpose? Weegy:
"The objective of financial statements is to provide information about the financial position, [ performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions." Financial statements should be understandable, relevant, reliable and comparable. Reported assets, liabilities, equity, income and expenses are directly related to an organization's financial position.
Financial statements are intended to be understandable by readers who have "a reasonable knowledge of business and economic activities and accounting and who are willing to study the information diligently." Financial statements may be used by users for different purposes:
Owners and managers require financial statements to make important business decisions that affect its continued operations. Financial analysis is then performed on these statements to provide management with a more detailed understanding of the figures. These statements are also used as part of management's annual report to the stockholders.
Employees also need these reports in making collective bargaining agreements (CBA) with the management, in the case of labor unions or for individuals in discussing their compensation, promotion and rankings.
Prospective investors make use of financial statements to assess the viability of investing in a business. ] Auto answered|Score 1|wisbest|Points 810|User:
Would you perform financial statement analysis, or rely on the findings of a rating agency for your needs? Weegy:
I prefer performing financial statement analysis. See for yourself.Auto answered|Score 1|jolito098|Points 70|User:
Come up with a creative way to explain the concept of "compound interest" to your friend.
Compound interest is actually interest on interest. Interest is added to the total of principal and interest, rather than just the principal itself. Auto answered|Score 1|debnjerry|Points 25148|
Education|No Subcategories|Auto Answered|1/5/2012 8:17:21 PM