Interpretation of Financial Statements Flashcards
1
Q
It is important that users of financial can interpret the financial statements to be able to draw _________
A
VALID CONCLUSSIONS
2
Q
__________ is widely used to support this process of comparing financial statements
A
RADIO ANALYSIS
3
Q
Primarily concerned with receiving an adequate return on their investment, but also with the stability/liquidity of the business
A
SHAREHOLDERS AND POTENTIAL INVESTORS
4
Q
Concered with the security of their debt or loan
A
SUPPLIERS AND LENDERS
5
Q
Concerned with the trend and level of profits, since this is the main measure of their success
A
MANAGEMENT
