How to interpret and infer a financial statement?

The analysis of financial statements means identifying the financial strength and weakness of a business establishment by interpreting and inferring the financial statements of the establishment. These statements cannot be analysed by the mechanical method as a financial statement is designed to give the fair view, not accurate. A careful, patient and informed analysis is a must…

How to study a Profit and Loss Statement?

[This article elucidates methods and techniques are used in the  analysis of profit and loss statements,Format of operative statement,meaning of gross profit, operating profit and net profit, depreciation and amortization etc.] The detailed financial statement which summarises all the income/revenue and all the expenses on earning of revenues is called as ‘Profit & Loss statement’…