Abstract
Financial Statement Analysis and Interpretation is a very vital instrument of good management decision-making in business enterprise. Good decisions ensure business survival, profitability and growth. Without financial statement analysis in investment decisions, an enterprise is likely to make decisions, which could spell its doom. Poor or lack of qualitative financial statement analysis could lead to investment returns, low profitability and even inability to identify viable investment opportunities. The main objective of this project is therefore, was to determine how firms could use financial statement analysis and interpretation to aid management decisions and to avert the problems highlighted above. Primary and secondary data are employed to broaden the scope of this study. Primary data are sourced from questionnaire responses. This provided data for the validation of the hypotheses tested with the use of chi-square (X2). The test revealed as follows: (1) Significant difference between the returns of the financial statement in Analysis and Interpretation based on management decision. (2) Organizational profitability has relationship with financial statement analysis and interpretation based management decision but not significantly. The project concludes that companies should pay great attention to the use of financial statement analysis so as to properly equip themselves with this invaluable tool. The researcher recommends the following:
(a) Accountants or financial analysts should not be rushed in collection, preparation, analysis and interpretation off financial statements.
(b) Financial statements should be made to reflect current cost accounting to eliminate or reduce the effects to historical cost principle and inflation risk element.
(c) A combination of different ratios should be used in analyzing a company’s financial and/or operating performance. Proper use of financial statement analysis should be made not only in investment but also in other areas of decision making.
NOT THE TOPIC YOU ARE LOOKING FOR?
Once payment is made, kindly send us your project topic, email address and payment name to +234 810 144 4147
Once payment is confirmed, Project materials will be sent to your email
Creating a good tax system implies that taxes should be collected regularly, consistently, conveniently and afford-ably. Taxes are backed by laws. Tax Laws refer to the embodiment of rules and regulations relating to tax revenue and the various kinds...
The study will benefit both employees and employers. It will benefit the employees in that each employee will be given an opportunity to state their individual perceptions toward employee relations and its effect on employee productivity and make rec...
The study proffers the new face of the accounting profession so as to nurture and build new entrants in the accounting profession according to quality and new standards set by the profession in the face of global technological changes
This study will be significant for Access Bank's management, other banks, share-holders, potential investors, and depositors, as well as for the economy as a whole. For bank management and managers, the study emphasizes the importance of this asset (...
The study's findings provide critical information for the state and its institutions in order to conduct future public-sector financial management changes.
This study will be beneficial to management accountants who are in charge of managing the organization's investment portfolio, as well as appraising and approving each investment.
This study would help add to understanding about the utility of credit unions, their reason for being, and to expose their hidden contributions to community development that are often neglected.
The study's findings will be useful to Nigerian policymakers since they will be used in the decision-making process. As a result, it will assist the government in formulating new policies.
This research will aid the government and the international community in better understanding the variables that influence the development and viability of the private sector in Nigeria.
This study will be significant to the government as it will bring to the fore the need for government to audit the implementation of this program, not just in Katsina state but also in other states of Nigeria.
Message Us on WhatsApp »
