Why ratios are used in analysing the financial statements


Discussion Post: Financial Analysis and International Accounting

Write an essay of between 980 and 1020 words on the following topic:

In the context of earnings management and income smoothing, critically assess how and why ratios are used in analysing the financial statements of a company and what actions should any assessment of possible earnings management or income smoothing also include.

The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.

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Financial Accounting: Why ratios are used in analysing the financial statements
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