Discussion Questions - Red Flags Many different tools are used to assess the financial statements of a
Question:
Discussion Questions - Red Flags Many different tools are used to assess the financial statements of a corporation. Discuss the purpose of each tool/process below along with the insight that you would expect to gain from each:
• Vertical and horizontal analysis of the income statement and balance sheet
• Cash flow analysis
• Deep-dive review of account balances
• Ratio analysis
Also include a discussion of the following technical tools:
• Structured Query Language (SQL)
• Open Database Connectivity (ODBC)
• Digital Analysis
• Outlier Investigation
• Stratification
• Summarization Consider how each of these financial tools can provide insight into the company and help management to develop a list of “red flags.”
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain