Mar
5
2012

Essay: Assessment of Financial Reports

Sample Essay

These statements are also utilized for assessing the cash flow prospects of the company as well with the same purpose in mind, to benefit investors and creditors. Cash flow projections are very important for decision making as cash inflows and outflows are ultimately the most important things in terms of a company’s ability to payoff investors and creditors. Without this liquidity, there would be little to pay off with (Kaplan 1995).

Furthermore, financial reporting gives information about the ownership of assets of the company and its related liabilities which allows users of the statements to assess what the company holds and how it is performing in general. It is also an indicator of the management’s performance during a fiscal year, allowing shareholders to judge whether the current crop of management and the Board of Directors is doing a good job handling their investment (Kaplan 1995). As such, the existing shareholders of the company need financial reporting to assess whether their investments are worthwhile. Prospective investors can utilize them to judge whether the company presents a better investment option compared to others in the industry and in general.

These are model essays please place an order for custom essays, research papers, term papers, thesis, dissertation, case studies and book reports.

Comments are closed.

Quality & Excellence

  • 100% Guaranteed plagiarism free
  • Satisfied customers worldwide
  • Excellent 24 7 customer support
  • Guaranteed privacy
  • Delivery prior to deadline
  • Professional PhD and MBA writers
  • Up-to-date sources only

Order Now

Like us on Facebook

Bumper Offer 25% Off

25% Discount

Simultaneously place 4 orders and get 25% off the least expensive assignment.

  • FREE Outline
  • FREE Title page
  • FREE Bibliography
  • FREE E-mail delivery
  • FREE Formatting