Volume 9, No. 13

 

Accounting Issues Review & Preview:  Analysts and investors often rail that accounting has limited use for them; they prefer to focus on important things like a firm's cash flow and its future prospects rather than past results. Valid points indeed, but hold on just a minute - the expression of cash flows depends heavily on accounting information. And if you want to understand how a company will prosper or flounder in the future, it's wise to look at how it performed in the past. Financial reporting of a firm's performance, i.e., earnings, provides analysts and investors with that information, subject to interpretation.

Comments are closed.

Powered by WordPress. Designed by WooThemes