Financial Analysis

FINANCIAL ANALYSIS

Explain the difference between financial reporting and financial statements?  What is the difference between comparative financial statements and common-size financial statements?  What items are usually assigned a 100% on a common size balance sheet and income statement, and why?

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Explain the difference between financial reporting and financial statements

            Financial reporting is the whole process of incorporating financial activities of an organization into a formal record so that they can be used by both internal and external users of the organization. On the other hand, financial statements are formal records of financial activities of an organization. In other words, financial statements are a product of financial reporting. Financial statements include comprehensive income statement, statement of financial position and cash flow statements (Bragg, 2013).  …………………….

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