THE DIAGNOSIS ANALYSIS OF FINANCIAL BALANCE BY USING LIQUIDITY
Annals - Economy Series, 2016, vol. 5, 80-83
The financial analysis of company is the activity of diagnosing the company’s state of performance the beginning to the end of the financial year, establishing the strengths and the weaknesses of the company's activity based on information provided by summary accounting documents (balance sheet, profit and loss and enclosures to the balance sheet). The purpose of the diagnosis analysis is to identify the situation of the company at a certain time to prevent its insolvency and to adopt the appropriate measures for ensuring increased liquidity and debt payment settlement.
Keywords: financial balance; balance sheet; liquidity; cash availability; stocks; debts (search for similar items in EconPapers)
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