The purpose of basic analysis is to transform the data in financial statements into useful information to help users of financial statements improve their decision-making. Modern basic analysis generally includes four parts: strategic analysis, accounting analysis, financial analysis and prospect analysis<br>(1) The purpose of strategic analysis is to determine the main profit drivers, business analysis and qualitative evaluation of the business;<br>(2) The purpose of accounting analysis is to evaluate the extent to which enterprise accounting reflects the basic economic reality, including the flexibility and applicability of enterprise accounting, as well as the revision of accounting data;<br>(3) The purpose of financial analysis is to use financial data to evaluate and evaluate the sustainability of the enterprise, including ratio analysis and cash flow analysis;<br>(4) The purpose of prospect analysis is to predict the future of the enterprise, including financial statement forecast and enterprise valuation.
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