Analysis and Interpretation of Financial Statements
After studying this chapter, you should be able to:
- Describe and explain the objectives of financial statement analysis.
- Describe the sources of information for financial statement analysis.
- Calculate and explain changes in financial statements using horizontal analysis, vertical analysis, and trend analysis.
- Perform ratio analysis on financial statements using liquidity ratios, long-term solvency ratios, profitability tests, and market tests.
- Describe the considerations used in financial statement analysis.
Source: James Don Edwards and Roger H. Hermanson, https://s3.amazonaws.com/saylordotorg-resources/wwwresources/site/wp-content/uploads/2012/10/Accounting-Principles-Vol.-1.pdf
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