Question

Analysis and interpretation of Financial Statements 2.
​

Answer 1

Answer:

Analysis and interpretation of financial statements are an attempt to determine the significance and meaning of the financial statement data so that a forecast may be made of the prospects for future earnings, ability to pay interest, debt maturities, both current as well as long term, and profitability of sound ...

Answer 2

Answer:

Introduction to Analysis and Interpretation of Financial Statements:

Analysis and interpretation of financial statements are an attempt to determine the significance and meaning of the financial statement data so that a forecast may be made of the prospects for future earnings, ability to pay interest, debt maturities, both current as well as long term, and profitability of sound dividend policy.

The main function of financial analysis is the pinpointing of the strength and weaknesses of a business undertaking by regrouping and analysis of figures contained in financial statements, by making comparisons of various components and by examining their content. The analysis and interpretation of financial statements represent the last of the four major steps of accounting.

$\huge\mathfrak\blue{hope \: it \: helps \: you}$

$\boxed{mark \: me \: as \: Brainlist}$

The first three steps involving the work of the accountant in the accumulation and summarisation of financial and operating data as well as in the construction of financial statements are:

(i) Analysis of each transaction to determine the accounts to be debited and credited and the measurement and variation of each transaction to determine the amounts involved.

(ii) Recording of the information in the journals, summarisation in ledgers and preparation of a worksheet.

(iii) Preparation of financial statements.

$\mathcal{THANKS \: \: FOR \: \: REMEMBERING}$