BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is needed to evaluate financial status?
A
Financial goal
B
Assets
C
Cash flow
D
Total income
Explanation: 

Detailed explanation-1: -Three ratios are used to measure financial solvency: the equity-to-asset ratio, the debt-to-asset ratio, and the debt-to-equity or leverage ratio.

Detailed explanation-2: -To accurately evaluate the financial health and long-term sustainability of a company, several financial metrics must be considered in tandem. The four main areas of financial health that should be examined are liquidity, solvency, profitability, and operating efficiency.

Detailed explanation-3: -The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company’s financial strength and provide a quick picture of a company’s financial health and underlying value.

Detailed explanation-4: -Why Is Financial Performance Important? A company’s financial performance tells investors about its general well-being. It’s a snapshot of its economic health and the job its management is doing-providing insight into the future: whether its operations and profits are on track to grow and the outlook for its stock.

Detailed explanation-5: -Financial information can be found on the company’s web page in Investor Relations where Securities and Exchange Commission (SEC) and other company reports are often kept. The SEC has financial filings electronically available beginning in 1993/1994 free on their website. See EDGAR: Company Filings.

There is 1 question to complete.