Trend analysis is a form of comparative analysis that is often employed to identify current arid future movements of an investment or group of investments. The process may involve comparing past and current financial ratios as they related to various institutions to project how long the current trend will continue. This type of information is…
The GAAP is a group of accounting standards that are widely accepted as appropriate to the field of accounting. Accounting standards are necessary so that financial statements are meaningful across a wide variety of businesses. An accounting standard is a guideline for financial accounting. The GAAP is comprised of a large group of individual accounting…
Financial statement analysis is the are of transforming data of financial statements into meaningful information for the decision making an effort on a total basis. Financial statement analysis is the process that aims to evaluate the current and past financial positions and results of operations of an enterprise. On the other hand, utilize an even…
Financial statements are integrated information of recorded events, accounting conventions and individual judgment capacity.
A cash flow statement means statements relating to information regarding the inflow and outflow of cash. Nowadays, in preparing financial statements, the cash flow statement is considered as an important element. Generally, a cash flow statement is prepared for a particular period or a financial year. The primary objective of the cash flow statement is…
4 accounting assumptions are; (1) business entity assumption, (2) money measurement assumption, (3) going concern assumption and (4) accounting period assumption.