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A case analysis is a comprehensive situational analysis that presents both quantitative and qualitative or financial and non-financial discussions, pertaining to an approach to problem solving; while financial analysis is primarily a quantitative presentation of objective support to decision making based on financial information. Both are similar in terms of analytical approaches to problem solving and decision making and the presence of financial analysis in a case analysis may provide a more comprehensive, that is accurate, relevant and objective solution to a problem under consideration.

There is a complementary relationship between case analysis and financial analysis. A case analysis may include a component of financial analysis in support of the requirements of the case, whereas financial analysis requires the use of quantitative techniques such as ratios, percentages or fractions that will assist decision-makers to an objective, logical and relevant guide to decision-making. (Montana & Charnov, 2000) Q. b What is the value of the financial statement to the case analysis? A.

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b Financial statements are extremely valuable and important to a case analysis in terms of the quantitative support needed to arrive at a more logical, accurate and relevant decision support system. Often, financial statements provide clear and accurate insights into the issues under consideration and help guide managers and decision makers evaluate past decisions and formulate future actions relevant to the case. Case analysis includes both quantitative and qualitative data to arrive at a viable approach to the various issues in problem solving and decision-making.

Without audited financial statements, approaches to business issues and problems will be weak, inaccurate, inconclusive and imbalanced. (Kaplan & Norton, 2003) Q. c. How are financial statements calculated? A. c Financial statements are calculated based on the comprehensive number of financial and non-financial transactions entered into by profit or non-profit organizations, summarized by an accountant based on prevailing accounting standards and principles.

Financial statements, when fully prepared, will indicate the financial position (balances of assets, liabilities and equity), results of operations (profitability) and cash flow results (sources and application of funds). Likewise, the financial statements are calculated based on the effects of financial transactions to the assets, liabilities and equity of the firm and whether such transactions increase or decrease such values and accordingly reported as balances or totals during a specific period. Figurative, financial statements are the financial implications of the results of the corporate decision processes. (Spiceland, Sepe & Tomassini, 2001)

Reference lists Anthony, R. and Govindarajan, V/ (2003) Management control systems. Eleventh Edition International Edition. McGraw Hill. Irwin, New York. Kaplan, R. and Norton D. (2004) Strategy maps. Converting intangible assets into tangible outcomes. Boston, Harvard Business School Press. Montana, PJ and Charnov, BH. (2000). Management. Third Edition, Barron’s Educational Series Inc. New York. Spieceland, JD, Sepe, JF & Tomassini, LA (2001). Intermediate accounting. International edition. Singapore, McGraw-Hill Companies.

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