Please answer the following question: "Your grandmother
sends you a large check for your birthday, asking that you
use the money to buy shares of stock in a company. She
recommends that you review the company's financial
statements before investing. What can a company's financial
statements tell you about the investment potential of its
stock?"
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Answer / sivareddyn
when ever a company have more growth potential rate in
future thefinancial statements will tells us the firm's
growth rate and past performance it is making profit or loss
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / mitesh
Generally financial statement reflects the financial
condition of the firm in terms of profit growth and
sales.There are different type of financial ratio which can
be calculated after seing the financial statement like Eps
ratio tell ur how much co. can pays to its
shareholder,other ratio are PE,Debt-Equity and many ratio
are relyy impotant to evaluate company performance
| Is This Answer Correct ? | 5 Yes | 0 No |
Generally financial statement reflects the financial
condition of the firm in terms of profit growth and
sales.There are different type of financial ratio which can
be calculated after seing the financial statement like Eps
(earning per share),Return on capital employed,working
capita ratio & acid test ratio.these ratios will give
adequate information related to liquidity position of
enterprise apart from that we should also analyse credit
policies of the enterprise by using account receivable
cycle & account payble cycle.
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / santosh kandel
The objective of making annual financial report is to reveal the exact financial status of a co. so that the board can take significant decisions for the future benifit of a co. Hence, we can detect the financial reports viz., P/L a/c, balance-sheet, cash-flow statement, value of the share-market of the related co. etc by which we may make an appropriate decision upon our investments.
| Is This Answer Correct ? | 0 Yes | 1 No |
An accountant used the horizontal layout to create a balance sheet. The capital of the owner was shown next to the liabilities, the confused owner argues, "My capital is my major asset and should be shown as an asset on the statement of financial position. how to begin explaining the misunderstanding to him????
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