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Accounting Truth Or The Extent To Which Financial Indicators Provide An Accurate Representation. A Quantitative Analysis

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  • Vlad BULAU

    (Alexandru Ioan Cuza University, Iași, Romania)

Abstract

Financial indicators are used for analysing and determining the financial position and the performance of a company. Most financial ratios rely on the accounting information within financial statements; many are calculated based on the accounts statement and profit and loss account. A company's financial statements are of interest to many people (managers, investors, and creditors, as well as providers, employees, trading partners, or public institutions). Financial analysis may acquire various forms, depending on the interest of each interested party. The utility of the indicators featured below relies on the need to have post-fact, present, and forecasting knowledge regarding the economic activity of an enterprise.

Suggested Citation

  • Vlad BULAU, 2022. "Accounting Truth Or The Extent To Which Financial Indicators Provide An Accurate Representation. A Quantitative Analysis," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 10(1), pages 67-79, February.
    • Handle: RePEc:scm:ejafbu:v:10:y:2022:i:1:p:67-79
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    References listed on IDEAS

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    1. Kaplan, Steven N & Ruback, Richard S, 1995. "The Valuation of Cash Flow Forecasts: An Empirical Analysis," Journal of Finance, American Finance Association, vol. 50(4), pages 1059-1093, September.
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