Transcription of FINANCIAL STATEMENT ANALYSIS - Pearson
{{id}} {{{paragraph}}}
Example: air traffic controller
FINANCIAL STATEMENT ANALYSIS - Pearson
INTRODUCTION TOFINANCIALSTATEMENTANALYSISUpon completion of this chapter, you should be able to: Understand the decision emphasis of FINANCIAL STATEMENT analysisand why a comprehensive approach is needed to meet this objec-tive. Indicate who uses FINANCIAL statements and how they use them tomake decisions. Show the importance of generally accepted accounting principles(GAAP) to ANALYSIS , which organizations determine GAAP, whyGAAP differs among countries, and the benefits of harmonizingGAAP. Determine the various concepts of capital maintenance andattributes of asset measurement. Articulate the benefits and limitations of the nominal dollar capi-tal maintenance concept and historical cost valuation in financialreporting and ANALYSIS . Explain how inconsistent terminology, data volume, transactioncomplexity, information variability, and FINANCIAL STATEMENT lim-itations can affect FINANCIAL STATEMENT LEARNING 8/6/01 5:54 PM Page 12 FINANCIAL STATEMENT ANALYSIS nalysts separate something whole an engine, a manufacturing process, afootball team, a presidential election, or a FINANCIAL STATEMENT into its parts.
the efficient market hypothesis states that stock prices fully reflect all publicly avail-able information.6 According to this hypothesis, excessive rates of returns cannot be earned through financial analysis. This might lead one to ask, “Why should equity investors analyze financial statements?” Equity investors do so for the fol-lowing ...
Tags:
Information
Domain:
Source:
Link to this page:
Please notify us if you found a problem with this document: