
ISSN: 2344 - 102X
ISSN-L: 2344 - 102X
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Article from Volume 1, Number 10, Year 2022ACCOUNTING TRUTH OR THE EXTENT TO WHICH FINANCIAL INDICATORS PROVIDE AN ACCURATE REPRESENTATION. A QUANTITATIVE ANALYSIS |  Download | Author(s): Vlad Bulau | DOI: 10.4316/EJAFB.2022.10110 | | Abstract: Financial indicators are used for analysing and determining the financial position and the performance of a company. Most financial ratios rely on the accounting information within financial statements; many are calculated based on the accounts statement and profit and loss account. A company's financial statements are of interest to many people (managers, investors, and creditors, as well as providers, employees, trading partners, or public institutions). Financial analysis may acquire various forms, depending on the interest of each interested party. The utility of the indicators featured below relies on the need to have post-fact, present, and forecasting knowledge regarding the economic activity of an enterprise. | Keywords: Accounting; Financial Analysis; Accounting Truth; Indicators; Liquidity; Solvency | References: 1. Brown, J., S., Elton, E., J., Goetzmann, W., M., Gruber, M., J. (2010). Modern Portfolio Theory And Investment Analysis, John Wiley And Sons Ltd, London, England
2. Kaplan, S., N., Ruback, R., S. (1995). The Valuation Of Cash Flow Forecasts: An Empirical Analysis, The Journal Of Finance, 50(4), P. 1059 – 1093
3. Ohlson, J., Gao, Z. (2006). Earnings, Earnings Growth And Value, Foundations And Trends In Accounting, 1(1), P. 15-28
4. Pratt, S., P., Niculita, A. (2008), Valuing A Business. The Analysis And Appraisal Of Closely Held Companies, 5th Edition, The McGraw – Hill Companies, New York
5. White, G., Sandhi, A., Fred. D. (2002). The Analysis And Use Of Financial Statements, 3rd Edition, Wiley Publishing, New Jersey |  
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