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Term Paper

2258 words - 10 pages

Introduction:
Financial Statement Analysis is used by interested parties such as inventors, creditors, and management to evaluate the past, current and projected condition and performance of the firm. Its analysis helps user make better desiccations. Ration analysis is the most common form of financial analysis. It provides relative measures of the firm’s conditions and performance. Horizontal analysis and Vertical analysis are also popular forms. Horizontal analysis is used to evaluate the trend in the accounts over the years, while vertical analysis, also called a common size Financial Statement discloses the internal structure of the firm. It indicates the existing relationship between ...view middle of the document...

Manager use this information for reached the company goals, evaluating the performance of department and individuals. Manager needs so many accounting information in order to make important decisions. Using the information manager created and used primarily by decision makers inside the organization for all planning and control decisions. Because the goal of creating and using internal accounting information differs from reasons for producing externally reported financial information.
In order to plan for and control ongoing business process in timely manager need financial information. A company manager constantly needs financial information to run and control business operation. Financial information is the primary role of accounting information is to provide useful information for decision making purpose. It is sometimes referred to as a means to a means to an end. With the end being the decision that is helped by the availability of accounting information.
To development the business strategy, business efficiency and for effectiveness business process managers need financial information. Now a day’s economic environment is changing very frequently, so it is all the more necessary for the managers to establish a high level professionalism with respect to the information debt, capital liquidity, funding and risk with a view grasping their consequences and independent dynamics. To survive against the worldwide unstable economic challenges, understanding the accounting information, professionals, Particular’s the managers, can acquire the necessary tools, techniques and approaches to develop, maintain, control and deliver projects more efficiently and effectively.

In case of external parties, the primary objectives of financial accounting are to provide information that is useful in making in investment and credit decision; in assessing the amount, timing and uncertainty of future cash flows; in learning about the enterprise’s resources and changes in claims to resources. Some of the most important characteristics of financial accounting information are it is a means to an end, it is historical in nature, it results from inexact and approximately measures of business activity, and it is based on general purpose assumption.
In case of internal parties financial information is useful to the enterprise in achieving its goals and mission, future directions. Internal financial information develops the manager’s skill to produce new and original financial models this helps diagnose problems and recommend innovative solutions to company, industry and national and global economic problems the fact that it is a means to an end.

Overview of the Company:
Our Purpose
We save people money so they can live better. Find out what we are passionate about. Our strengths and our reason for being.
Our History
It all began in 1962 in Rogers, Arkansas. And it’s been one incredible journey.

Our Principles
Our founder Sam Walton gave our Company a...

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