Question

What is the best answer for those questions?

1. What is the objective of financial statement analysis?

2. Explain why and how financial statements are useful for decision-making.

3. What are some of the way management can impact the quality of financial reporting?

4. Describe the decision making process of the accounting rules.

5.   Find the resources of financial information of the Microsoft in different ways.

6.   Describe the components of a Form 10-K.

7.   What are the four major financial statements?

8.   What types of information can be found in the notes to financial statements?

9.   What is the purpose of the audit report? Explain the difference between an unqualified and a qualified opinion.

10. What is the Sarbanes-Oxley Act of 2002?

11. What information can be found in the Management Discussion and Analysis?

Answer 1

1. To judge the profitability and financial soundness of the firm, and to make forecast about future prospects of the firm.

2. To decide whether or not to invest their capital in the company's share, investment decision making purpose and taxation decisions.

3. By Window dressing the financials, lowering the discloures made, etc quality of financial reporting can be impacted

4. It provides investors with a baseline of analysis for — and comparison between — the financial health of securities-issuing corporations. It helps creditors assess the solvency, liquidity, and creditworthiness of businesses

5. Its website, SEC Filing data etc

6. The 10-K includes information such as company history, organizational structure, executive compensation, equity, subsidiaries, and audited financial statements, among other information.

7. There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity

8. Provide additional information pertaining to a company's operations and financial position

9. The purpose of the statutory audit is to provide an independent opinion to the shareholders on the truth and fairness of the financial statements, whether they have been properly prepared in accordance with the Companies Act and to report by exception to the shareholders on the other requirements of company law, taxation laws, disclosure requirement for fair view.

An audit report can be unqualified if there is a limitation of scope in the work of an auditor. ... However, it should be noted that having a qualified audit report is a sign that a business is deteriorating as it only means that a company's financial statements are not found to be transparent.

10.The Sarbanes-Oxley Act of 2002 is a federal law that established sweeping auditing and financial regulations for public companies. Lawmakers created the legislation to help protect shareholders, employees and the public from accounting errors and fraudulent financial practices

11. Management discussion and analysis (MD&A) is the portion of a public company's annual report in which management addresses the company’s performance over the previous twelve months. In this section, the company’s high-ranking officers analyze the company’s performance using qualitative and quantitative performance measures. In the MD&A section, management will also provide commentary on financial statements, systems and controls, compliance with laws and regulations, and actions it has planned or has taken to address any challenges the company is facing. Management also discusses the upcoming year by outlining future goals and approaches to new projects. The Management Discussion and Analysis is an important source of information for analysts and investors who want to review the company’s financial fundamentals and management performance.