evaluating the financial health of a firm is critical not only for management’s understanding of the business but also for outside investors and creditors. evaluating a company has a specific set of criteria and processes from both an accounting and a financial standpoint. this week we will discuss the reasons behind these consistent procedures and why they have been implemented.
considering this address the following prompts in your discussion:
why is it necessary to have a consistent method of financial analysis?
is it unethical to deviate from industry standards when analysis is concerned?