Question

relevant theoretical background of the Impact of engineering decisions on financial statements

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Answer 1

The concept of financial statements - Financial statement is the principal means of reporting financial information for internal and external users. In reality, both public and private tradeed corporarions must comply with strict requirements for preparing financial statements. Generally accepted accounting principle is the  'ground rules' for financial statementsand reporting as well.

Financial ratios - The concepts of financial retio and proportion are findamental to mathematics and important in many other fields of knowledge. many phenomena can be expressed as some proportional relationship between specific variable, often leading to some new unique entity.

1. Profitabiliyt Ratios - Profitability retios is a class of financila metrics that are used to evaluating the corporation;s skill to make reciving likened to its expense and other applicable coasts sustained throighout that period of time
2. Liquidity Ratios - The liquidity or solvency retios are focised on a firm ability to meet its short-term debt and oblogations .
3. Asset Utilization Ratios - AQsset utilization retio include receivables turnover,days' sales in receivables, inventory turnover,day' sales in inventory, cash turnover retiop, total asset turn over retio.