“Performance Evaluation of Financial Statements by the Use of Ratio”

12005 Words49 Pages
“Performance Evaluation of Financial Statements by the Use of Ratio”


In partial fulfillment of the requirements for the award of BBA (ACCOUNTING)

During the period 2008-2011

Chapter one


1. Background

Financial statements are formal records of the financial activities of a business, person and other entities .Financial statements are all relevant financial information that are presented in a structured manner and in a form easy to understand to be used by parties both internal and external to the business enterprise .In addition, these statements should be understandable, relevant, reliable and comparable. Reported assets, liabilities, equity, income and expenses are directly related to an
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5. Objectives of the study

The main objectives of this study are:

1. Assess the way businesses or organizations measure their performance by the use of financial analysis technics

2. Assess the implication of financial statements and its significance on the businesses in a general manner

3. Better understanding of financial analysis and its tools

4. The simplification of the accounting information for a better comprehensive understanding of their relation which leads to a better decision making process

5. Accumulating and presenting relevant data for management decision making.

6. Significance of the study

Evaluating /measuring performance is essential for decision making process. This is based on financial statements which are vital to success of businesses and even individuals who rely on it as fair and meaningful summaries of day-to-day financial activities or transactions. That is why the understanding and analysis of financial statements with no bias is very important and that what makes this study crucial .In this study the previous topics will be addressed in an academic and explanatory way.

7. Scope of the study

Financial analysis is a tool for decision making so is related to huge area of study, but the paper will be more specified and focused on Coca Cola Company. By the use the company annual reports, academic research in the field of performance evaluation and financial analysis. This will be all about
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