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Management Accounting by Debarshi Bhattacharyya

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2

Analysis and Interpretation of Financial Statements

LEARNING OBJECTIVES

On completion of the study of the chapter, you should be able to understand:

  • What are Financial Statements?

  • Components of Financial Statements.

  • Relationship between Income Statement and Balance Sheet.

  • Concept of Financial Statement Analysis.

  • Objectives and requisites of Financial Statement Analysis.

  • Different approaches to Financial Statement Analysis.

  • Different types of Financial Statement Analysis.

  • Different techniques of Financial Statement Analysis.

2.1 MEANING OF FINANCIAL STATEMENTS

Financial Statements are compilation of financial data, arranged and organized in a systematic and summarized manner according to the accounting principles, to assess the financial ...

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