Question

Describe financial reporting and describe financial analysis? What is the role of each and how do they work together?

Answer 1

Financial reporting is reporting of a financial statements of the company and it is a reporting of various cash flows along with statements of equity and income statements along with the balance sheet of the company which will provide about the adequate financial performance of the company within a time period.

Financial analysis is the analysis of financial statements of the company and it is done by various kinds of analyst in order to make investment related decisions and it is related to find out the ability of the company for sustain and survive in the long run and make profits also financial analysis will be helpful for various stakeholders to invest in the company for the longer period of time.

financial analysis is done by accessing the financial reports of the company so they are highly interrelated because financial reporting is done through the financial reports which has been reported by the company and it will be helpful in making various investment related decisions by keeping invested into longer period of time so it will be providing a support to the company in order to make decisions for various stakeholders in respect to the company in respective of their current situations.