Briefly explain how to assess the financial condition of an organization

  1. Briefly explain how to assess the financial condition of an organization. (Finance)

n order to assess the financial condition of an organization a minimum of three most commonly known financial monitoring reports need to be evaluated and these are:

1)      Assets and Liabilities in which an all-inclusive balance sheet bearing all the assets, liabilities as well as the net worth of the organization is made as this provides an almost near perfect view of the company’s financial status.

2)      Operating Budgets: For a detailed study of the company’s finance, the finance and accounting segment of the company must come up with a complete gist of the operating budgets of the company for the present as well as for a minimum of the last three years as this allows for the comparison of the budgeted performance against the performance in real as well as the identification of the trends indicating negative outlines.

3)      Profit Analysis: The finance and accounting segment of the company also needs to look at the profit analysis statements which can give solutions to a number of questions which crop up regarding the profits or losses the company is likely to bear.

If the above three fetch all the important fiscal information the financial condition of the company can then be assessed to a great extent.

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