Discussion: "Analysis of Financial Statements"

Please respond to the following:

• * From the e-Activity, determine why it is sometimes misleading to compare a company's financial ratios with those of other firms that operate within the same industry. Support your response with one example from your research.

• * From the scenario, determine two strategies that TFC could utilize to reach its expansion goals. You may, for example, consider your analysis of TFC's financial statements, as well as your knowledge of TFC's excessive cash position. Provide a rationale for your response.

Class, here are some questions to consider:

1. How would you describe the terminology generally used in financial accounting?

2. How are balance sheets and income statements prepared and how are they interrelated?

3. What would you say is the most important accounting principles used to prepare financial statements? Examples of how business and financial decisions affect the balance sheet and income statement would be most helpful.