Financial Statement Analysis

A financial statements are documents prepared communicating with a business financial activities. Financial statements are a key component of accounting. Financial statements are presented in a structured manner with conventions accepted by accounting and regulatory personnel. There are four different financial statements which includes the balance statement, income statement, retained statement, and the statement of cash flow.

There are four major financial statements that investors, creditors, accountants, CEO’s, and the like study when looking at the financial

1. What are the factors that likely explain the difference between Microsoft’s market value of equity and its reported book value of equity?

Financial reports consist of a statement of financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows, notes, directors' declaration, directors' report and the auditor's report. The financial statements need to be prepared in accordance with applicable accounting standards, making the necessary disclosures in order to be transparent and fully inform readers about the activities and financial situation of the entity.

The use of financial statements is to provide individuals, but not a specific group with compressed financial data showing them the information that pertains to the decision they want to make. They are also able to see past performance of their company and comparing corporation that is in the same industry (Edmonds, Tsay, & Olds, 2011).

Financial statements of the company are significant for the investors who would like to venture into the business operation. It gives them the insight whether the business is making profits or it is doomed to fail;

The financial statement or statements that pertain to a stated period of time is (are) the: a. b. c. d. e. balance sheet balance sheet and journals balance sheet and income statement income statement none of the above

In the world of accounting, there are four basic financial statements that are necessary to track finances. The four basic financial statements used in accounting day-to-day are the balance sheet, income statement, retained earnings statement, and the statement of cash flows. All of these statements are interrelated and would not function without the other. Most importantly each of the basic four financial statements is extremely important to both internal and external users to track assets, liabilities, expenses, and revenues.

Financial statements are used to track performance and explain differences in multiple companies (Melicher & Norton, 2013). The information available on these reports is important to have if you run a company, or are researching it for investment purposes. These statements can show where money could have been saved, or used in a different way. They are a useful tool for management to adjust their approach as needed. There are different industries, which results in a variety of assets, liabilities, products, services, and approaches to producing profit (Melicher & Norton). There are large and small companies and financial statements provide a way to research and, or compare them. The following will discuss financial statements, including income statements, balance sheets, and statement of cash flows.

The income statement, balance sheet and statement of cash flow are the biggest financial statements released by all publicly traded corporations; within different market sectors there are other standard forms that are released as well. These statements allow investors and potential investors a great deal of insight into the specifics of the business rather than just having to take someone’s word at a press conference on how it is functioning.

The process of developing financial statements for a business is to provide supporting documentation to what has been reported as annual or quarterly income. Within the financial statement analysis strengths and weaknesses are identified through the comparison of data from the balance sheet. There are many different ways to interpret the data that is utilized for the analysis; those include but are not limited to comparative statements, schedule of changes in working capital, common size percentages, and ratio analysis. The following paper will be reviewing the financial data from Verizon Communications (VZ). Through the

This paper describes a financial statement analysis project useful in both preparerbased and user-based introductory courses in financial accounting. The project

There are four types of basic financial statements. They are the balance sheet, income statement, statement of equity, and statement of cash flows. Each of these are taken into account as a source for the company and used for different reasons. Creditors, investors, and management all have different reasons for having more interests in the certain statements they choose to look at closer.

Each type of financial statement has its own use to the public, shareholders and potential investors, they perform different roles.

For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four basic financial statements, accompanied by a management discussion and analysis: