The Usefulness Of Financial Statements In Assessing The Performance Of Companies And In Guiding Investment Decisions

CHAPTER ONE 1.0              INTRODUCTION: 1.1       BACKGROUND OF THE STUDY: A company’s financial statements are analyzed internally by management and externally by investors and creditors. Management analysis of financial statements primarily relates to parts of the company which enables management to plan, evaluate, and control operation within the company.  Investors and creditors generally focus their analysis of financial statements on the company as a whole, which helps them decide whether to invest in or extend credit to the company. As a minimum, financial statement will include a s…