COMM 103 Chapter Notes - Chapter 14: Income Statement, Current Liability, Step One
26 Aug 2013
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Document Summary
Analysing and interpreting financial statements is what enables a management team to keep its fingers on the pulse of the organization. Need to know if the company is effectively using its resources. F. s. keep managers up to date on the success of an org"s sales and marketing initiatives. Let"s managers know the organizations ability of controlling its costs to maintain its gross and profitability margins. Managers generally rely on i. s. , b. s. , and the cash flow statement: provide info regarding liquidity, profitability, and solvency. Provides info relating to the overall growth of the company. Operational transactions: represent the flow of money within the organization: directly related to day-to-day operations ie. revenue, expenses. Capital asset transactions: decisions made with respect to investment/disinvestment of capital assets buildings, equipment: not directly related to current year"s profit, but they do have an impact on cash flow.
