BUS 251 Lecture Notes - Financial Statement Analysis, Financial Statement

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Steve Gibson

Document Summary

Users need to make decisions using the financial statements and ratios. Analyst tailor the analysis to the demands of the decision to be made. Accessing the risk, operating activities of the business, underlying economics and external economic factors. Low-cost producer: providing goods and services at the lowest cost possible and sell high volume: works best when there is a competitive item and price is the most important. Specialized product with superior services that customers are willing to pay premium for: can sell lower volume of goods (high-end retailers_ Users have to read and analyze the management"s expectations and risks of the company compared to today"s news and economic events also the audit report and notes to financial statements sections. Auditor"s report: make sure that the information are fairly according to gaap but doesn"t indicate the information is correct or not: unqualified/clean opinion: fs give a true and fair view of company"s financial position (gaap)