tailieunhanh - Lecture Financial accounting (15/e) - Chapter 14: Financial statement analysis

After completing this chapter, students will be able to: Explain the uses of dollar and percentage changes, trend percentages, component percentages, amd ratios; discuss the quality of a company's earnings, assets, and working capital; explain the nature and purpose of classifications in financial statements;. | Financial Statement Analysis Chapter 14 Chapter 14: Financial statement analysis Financial Statements Are Designed for Analysis Financial statements may be presented in various formats to help facilitate analysis. A classified set of financial statements groups items with similar characteristics together. Groupings include categories such as current assets; property, plant, and equipment; current liabilities; noncurrent liabilities; revenues; selling expenses; and so forth. Comparative financial statements present several years of financial information side by side for ease of recognizing trends and changes in amounts. Consolidated financial statements present combined information for the parent company and all subsidiaries. Dollar & Percentage Changes Trend Percentages Component Percentages Ratios Tools of Analysis In order to compare companies or to assess the status of a single company, analysts use several different forms of analysis. Analysts use the change in dollar and percentage changes, trend percentages, component percentages, and ratios to perform assessments of a company’s performance. Let’s look at how each of these tools can be used. Dollar and Percentage Changes Dollar Change: Analysis Period Amount Base Period Amount Dollar Change = – Percentage Change: Dollar Change Base Period Amount Percent Change = ÷ To determine the dollar change in an item, take the current period amount and subtract the base period amount. The base period is the period from which you are trying to determine the change. The base period may be the immediate past period or several periods earlier. To determine the percentage change in an item, take the dollar change and divide it by the base period amount. Dollar and Percentage Changes Sales and earnings should increase at more than the rate of inflation. In measuring quarterly changes, compare to the same quarter in the previous year. Percentages may be misleading when the base amount is small. Evaluating . | Financial Statement Analysis Chapter 14 Chapter 14: Financial statement analysis Financial Statements Are Designed for Analysis Financial statements may be presented in various formats to help facilitate analysis. A classified set of financial statements groups items with similar characteristics together. Groupings include categories such as current assets; property, plant, and equipment; current liabilities; noncurrent liabilities; revenues; selling expenses; and so forth. Comparative financial statements present several years of financial information side by side for ease of recognizing trends and changes in amounts. Consolidated financial statements present combined information for the parent company and all subsidiaries. Dollar & Percentage Changes Trend Percentages Component Percentages Ratios Tools of Analysis In order to compare companies or to assess the status of a single company, analysts use several different forms of analysis. Analysts use the change in dollar and

• Kế toán - Kiểm toán
• Financial accounting
• Lecture Financial accounting
• Financial statement analysis
• Financial statement
• Operating cycle
• Issues in financial accounting
• Kế toán tài chính
• Financial statements
• Accounting standards
• Financial reporting
• Financial Accounting Standards Board
• Fundamental financial accounting
• Lecture Fundamental financial accounting concepts
• Accounting cycle
• Accounting for accruals
• Accounting system
• Accounting activities
• Financial accounting practice
• Accounting information system
• Accounting terminology
• Reporting financial results
• Evaluating liquidity
• Business firms
• The financial reporting reform
• Accounting information
• Management accounting
• Accounting equation
• Accounting systems
• Decision making
• External financial reporting
• Accounting for business
• Lecture Accounting for business
• Financial accounting reports
• Statement of financial performance
• Accrual accounting systems
• Statement of financial position
• Mastering financial accounting essentials
• Financial accounting essentials
• Accrual accounting
• Income statement
• Accounting conventions
• Internal control
• Accounting for cash
• Accounting for receivables
• Computing uncollectible accounts expense
• Long term debt
• Accounting for long term debt
• Paper F3
• Revision kit 2016
• Accounting Financial
• Accounting Financial Review
• Financial Review accounting exam
• Study text 2016
• Language of business
• Double entry accounting system
• Credit terminology
• Merchandising businesses
• Accounting for merchandising businesses
• Accounting for inventories
• Cash discounts
• The accounting cycle
• International financial reporting standards
• Completing the accounting cycle
• Accounting worksheet
• Classified balance sheet