ACCT504 Week 8 Discussion Latest 2019 June

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ACCT504 Accounting and Finance: Managerial Use and Analysis

Week 8 Discussion

DIFFERENT TOOLS OF FINANCIAL ANALYSIS

There are different tools for analyzing the financial statements of a company, such as horizontal analysis, vertical analysis, ratios for measuring financial health and profitability, and so forth. But before we begin using these tools, it is important to know the purpose of each tool.

Why do we need different tools for analyzing financial statements? Don’t the numbers in the financial statements speak for themselves?

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