RSM219H1 Chapter Notes -Quick Ratio, Market Price, Corporate Finance
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RSM219H1 Full Course Notes
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Understanding the business: operating activities, underlying economics and risks in the industry, overall strategy followed by the company. They need to have a high volume of goods at the lower prices. Specializing to make a higher profit margin; they can success with a low volume. Auditor"s report: the financial statement gives a true and fair view of the company"s financial position and the results of its operations in accordance with accounting principles. Three parts: opinions on the financial statements, state their justifications, outline the specific procedures they use. *economic environment must also be understood: time series analysis: the analyst examines information from different time periods; to look for any patterns in the data over time. Many companies provide five- or ten- year summaries to assist in making this analysis. Different industries might have different accounting principles; gives industry trends of how well a company performs relative to its competitors.
