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ACC561 Accounting Week 2 DQ

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What are the main objectives of comparative analysis and why is this important to external users of the financial statements, such as investors?

 

Author’s Corner Video “Financial Statement Analysis”

What are the main objectives of ratio analysis and why is this important to external users of the financial statements, such as investors?

 

Author’s Corner Video “Comparing Companies”

In this video, Paul Kimmel explains how to compare financial information for companies of different size.  As a manager, what methods would you use to compare the financial information for two companies that vary greatly in size?  Why is industry analysis important for companies?