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Financial Management
book

Financial Management

by Jack Alexander
January 2024
Intermediate to advanced content levelIntermediate to advanced
720 pages
17h 20m
English
Wiley
Content preview from Financial Management

2The Fundamentals of Finance and Financial Statement Analysis

BASICS OF ACCOUNTING AND FINANCIAL STATEMENTS

The three primary financial statements are the Income Statement, the Balance Sheet, and the Statement of Cash Flows. We need all three statements to properly understand and evaluate financial performance. However, the financial statements provide only limited insight into a company's performance and must be combined with key financial ratios, and ultimately, an understanding of the company's market, competitive position, and strategy before evaluating a company's current performance and value. A significant limitation of financial statements is that they present historical results, that is, the past. Other measures and mechanisms must be utilized to see what is happening in the present and to predict and manage future outcomes.

Financial statements are based on generally accepted accounting principles (GAAP). A key objective of financial statements prepared under GAAP is to match revenues and expenses. Two significant ...

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Publisher Resources

ISBN: 9781394228362Purchase Link