Lesson 1: STUDIES OF THE FINANCIAL STATEMENTS
Financial analysis is part of management accounting. Management accounting is a type of accounting that uses managers to study the financial information of a company.
They analyze the information and their primary purpose is to provide ideas internally to enhance the company’s profitability strategies. All the information they analyze is given to them by financial accountants. o Management accountants do not prepare any of the daily financial work of a company. They are simply given the information and their job is to analyze and investigate the information they are given. The information they use for analyzing is company financial statements and other types of reports.