THE ROLE OF THE FINANCIAL-ACCOUNTING DIAGNOSIS IN THE MONITORING OF THE FINANCIAL HEALTH OF THE ECONOMIC ENTITIES

Hada Izabela Diana and Hint (stefan) Mihaela
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Hada Izabela Diana: 1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA
Hint (stefan) Mihaela: 1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA

Annals - Economy Series, 2019, vol. 3, 122-127

Abstract: Financial accounting diagnosis is a process, a complex action that involves the identification of the existing dysfunctions at the entity level, the calculation, the measurement and the determination of their influence on the economic-financial activity, but most importantly the prescribing the therapy, or eliminating potential disturbing factors. The purpose of this article is to illustrate the role of financial-accounting diagnosis in monitoring the health status of economic entities. The research results highlight the major importance of diagnosis as a complex tool for verifying the functionality of an entity used to identify elements that impede the proper course of action by identifying signs of aggravation of the financial health of the entity and prescribing the treatment necessary to carry out within normal limits activity and improvement, providing a specialized insight into the entity's course over a given period. Diagnosis is an important activity that should be done at the level of each entity throughout the entire economic activity, thus leading to the good course of activity.

Keywords: financial accounting diagnosis; strengths; weaknesses; financial health of the entity (search for similar items in EconPapers)
Date: 2019
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