Financial statements (Financial Statements) of an undertaking is considered as a source of information that would indicate about the asset. (Assets), liabilities (Liabilities), and owner's equity (Equities) that the financial statements, these are called "balance sheet" (Balance Sheet) the financial statement called the "profit and loss" statement (Income Statement), it will be a source of information about the income and expenses of the parties. The preparation of the financial statements of the joint venture, to be based on accounting principles generally, and supported under the account policies are established by each specific joint venture. Financial statement analysis (Financial Statement Analysis) to help benefit creditors, investors and other users of financial statements to determine access to credit, and with the potential to earn your affairs. In this chapter will show through the use of financial ratios (Financial Ratio) in the analysis of financial statements to evaluate the financial health of the business.The importance of analyzing financial statements with financial ratios is to explain or interpret the meaning of the calculated ratio that we can typically analyze the financial health of the business by watching the trend of the ratio calculated in the previous year, compares.T-yopkap at present or will be done to compare the ratio of industry categories, unfortunately the same on average, or compared to competitors with business operations in the same business, but however, analysis of financial statements, it must take into account the information from the เงิ statement.T used in the analysis of whether the conditions and financial accounting policies, as well as other businesses that bring in comparison? This will not make the translation of the meaning of ratio analysis of reality, such as one of the parties might be using the FIFO inventory price hit another one of the parties may use LIFO, or depreciation of each undertaking may use a different method, it is possible, etc.
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