SUMMARY:

Financial Statement Analysis is a method of reviewing and analyzing a company’s accounting

reports (financial statements) in order to gauge its past, present or projected future performance.
This process of reviewing the financial statements allows for better economic decision making.
Here, we will look at 1) the users of financial statement analysis, 2) the methods of financial
statement analysis, 3) key accounting reports (the balance sheet, income statement, and statement
of cash flows) and how they are analyzed, 4) other financial statement information, and
5) problems with financial statement analysis
Furthermore we discuss on these points in above report:
1)Historical cost:
2)Conservatism:
3REALIZATION;
4)The Point of sale:
5)End of production:
6)Receipt of Cash
7)During Production
8)Cost Recovery
9)Matching:
10)Consistency:
11)Full Disclosure Principle:
12)Materiality:
13)Industry Practice:
14)Transaction approach:
15)Cash Basis:
16)Accrual Basis:
17)Using the Internet: