When formulating strategy, the interaction of the quadrants in the SWOT profile becomes important. For example, the strengths can be leveraged to pursue opportunities and to avoid threats, and managers can be alerted to weaknesses that might need to be overcome in order to successfully pursue opportunities.
Financial statement analysis explanations Horizontal analysis also known as trend analysis is a financial statement analysis technique that shows changes in the amounts of corresponding financial statement items over a period of time.
It is a useful tool to evaluate the trend situations. The statements for two or more periods are used in horizontal analysis.
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The earliest period is usually used as the base period and the items on the statements for all later periods are compared with items on the statements of the base period.
The changes are generally shown both in dollars and percentage.
Dollar and percentage changes are computed by using the following formulas: Horizontal analysis may be conducted for balance sheetincome statementschedules of current and fixed assets and statement of retained earnings. An example of the horizontal analysis of balance sheetschedule of current assetsincome statement and statement of retained earnings is given below: Comparative balance sheet with horizontal analysis: Comparative schedule of current assets: Comparative income statement with horizontal analysis: Comparative retained earnings statement with horizontal analysis: In above analysis, is the base year and is the comparison year.
All items on the balance sheet and income statement for the year have been compared with the items of balance sheet and income statement for the year The actual changes in items are compared with the expected changes.The topic for this week is ratio analysis and forecasting.
Since ratio analysis involves financial statement numbers, I’ve included two optional videos that review financial statements and sources of financial data, in case you need a review.
Cost Accounting Jobs. Cost accounting is a facet of management accounting that determines the actual cost associated with manufacturing a product or providing a service by looking at all expenses within the supply chain. school of distance education accounting for management page 3 contents page module i accounting for management- introduction 5 module ii analysis and interpretation of financial statements 14 module iii funds flow statement 68 module iv marginal costing 95 module v responsibility accounting Financial statement analysis involves gaining an understanding of an organization's financial situation by reviewing its financial statements.
This review involves identifying the following items for a company's financial statements over a series of reporting periods. Accounting involves analysis of an organization's accounts and fiscal trends to provide data to advise those in business to make accurate decisions and .
The course is designed to provide students with insights into the complex environment that organizations of any size operate. Organizational leaders’ and organizational members’ responsibility to use ethical thinking to balance stakeholder interests with organizational duty are examined.