Title: ANNUAL FINANCIAL STATEMENTS - INSTRUMENT USED IN THE MANAGEMENT OF ECONOMIC ENTITIES
Abstract: One of the main functions incumbent on economic and financial analysis is of enterprise’s managerial instrument since the competent management of a company means to meet the economic realities in which we operate, be aware of the ups and downs of the entity you run, and this is not possible without relevant and timely analysis. Efficient resources management is to achieve the desired results with as little resources as possible. One of the major goals of enterprise’s management is the sound and efficient management of its available resources, due to their limits, in order to ensure a higher level of efficiency and profitability. The management team is interested in all aspects of financial analysis, because the company it leads has to be able to honor and pay both short-term and long-term and debts and it must equally make a profit for shareholders. A variety of indicators (profitability, liquidity, solvency, working capital etc.) can be calculated based on the company's financial statements, and their result will help the management team for decision-making. Company’s management necessarily includes the management of its resources, economic management and particularly financial management, as well as decisions on the purchase and distribution of resources, both human and material, as well as the financial and informational. Thus, because of its importance, financial control system can be considered as an indispensable managerial instrument for monitoring the regular activity of company’s activity in order to make timely decisions regarding each function, but also the entire company.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
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Cited By Count: 2
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