Module 3: Chapter 8 - Financial Analysis

One of a company's financial statements which referred to as a statement of financial performance because It helps a company monitor its revenue and expenses to ensure its financial condition.

• Balance Sheet

• Income Statement

• Cash Flow

• Notes of Financial Statements

known as the Statement of Financial Position. It indicates the balance of assets, liabilities, and equity at the end of the accounting cycle.

• Income Statement

• Notes of Financial Statements

• Statement of Cash Flow

• Balance Sheet

These documents illustrate the entity's assets, liabilities, equity, incomes and expenses, shareholders' contributions, cash flow, and other relevant data throughout a specific period.

• Financial Institutions

• Financial Analysis

• Financial Statements

• Financial Ratios

Answer explanation

Every organization requires various critical financial statement documents. There are five main financial statements: an income statement, a balance sheet, a statement of equity and changes in equity, a cash flow statement, and notes to financial statements.

One of the user of financial statements which is interested in information that enables them to determine whether the loan and the related interest will be paid when due.

• Lenders

• Employees

• Investors

• Suppliers

This obligation must be paid off within a year. It means the company can or will settle the loan within 12 months or less.

• Current Assets

• Current Liabilities

• Noncurrent Liabilities

• Intangible Assets

 Assets that cannot be touched which include things like goodwill, brand awareness, and intellectual property like patents, trademarks, and copyrights.

• Current Assets

• Noncurrent Assets

• Intangible Assets

One of the financial statements which details the inflow and outflow of cash at the company throughout the given time frame

• Balance Sheet

• Income Statement

• Statement of Changes in Equity

• Statement of Cash Flow

Financial details pertaining to the individual accounts are detailed in the note, or disclosure as it is occasionally known

• Balance Sheet

• Statement of Cash Flow

• Notes of Financial Statement

• Income Statement

One of the user of financial statements which is interested in information that will help them determine whether they should buy, hold, or sell their equity.

• Lenders

• Employees

• Investors

• Suppliers

These are calculated using numerical numbers from financial statements to provide useful information about a firm. The data on a company's financial statements (balance sheet, income statement, and cash flow statement) are used to undertake quantitative analysis and analyze liquidity, leverage, growth, margins, profitability, rates of return, value, and other factors.

• Financial Statements

• Financial Analysis

• Financial Ratios

• Financial Institutions