The following course introduction to Financial Tools provided in its entirety by Gideon Robert University’s which strives to make knowledge and education readily available to those seeking advancement regardless of their socio-economic situation, location, or other previously limiting factors.
FINANCIAL MANAGEMENT UPPER TOOLS 1.1 STUDIES OF THE FINANCIAL STATEMENTS: Financial analysis is part of management accounting. Management accounting in a type of accounting that uses managers to study financial information of a company. They analyze the information and their primary purpose is to provide ideas internally to enhance the company’s profitability strategies. All the information they analyze is given to them from financial accountants. o Management accountants do not prepare any of the daily financial work of a company.
They are simply given the information and their job is to analyze and investigate the information they are given. The information they use for analyzing is company financial statements and other types of reports. Financial Statements o Financial statements are the primary source of information used by management accountants. These accountants use the financial statements as most of their investigation. They compare the financial statements to prior periods and look for patterns and changes. They also study the budget to actual numbers and look for variances. All variances are investigated by management accountants as part of their financial analysis.