Financial example sentences

The total amount of debenture liability is divided by the number of years it is to 114 Accountancy : Company Accounts and Analysis of Financial Statements last and the actual debentures redeemable are identified by means of drawing the requisite number of lots from out of the debentures outstanding for payment.Many users need financial information in order to make important decisions.There are differing accounting policies for valuation of stock, calculation of depreciation, treatment of intangibles, definition of certain financial variables, etc.A trade creditor, through an analysis of financial statements, appraises not only the urgent ability of the company to meet its obligations, but also judges the probability of its continued ability to meet all its financial obligations in future.Analysis of financial statements reveals important facts concerning managerial performance and the efficiency of the firm.Services of manufacturers: The services provided by wholesalers to manufacturers include facilitating large scale production; bearing risk; providing financial assistance; expert advice; help in marketing function; facilitating continuity; and storage.You will recall that cash flow analysis has also been mentioned in Chapter 4 as a technique of financial analysis.A collateral security may be defined as a subsidiary or secondary or additional security besides the primary security when a company obtains a loan or overdraft from a bank or any other financial Institution.The financial statements provide basic input for industrial, taxation and other economic policies of the government.For example, purchase of machinery, installing and keeping it ready for manufacturing is an event which comprises number of financial transactions such as buying a machine, transportation of machine, site preparation for installation of a machine, expenditure incurred on its installation and trial runs.These are the statements showing the profitability and financial position of a firm for different periods of time in a comparative form to give an idea about the position of two or more periods.In this case, the time of repayment is known in advance and the company can plan its financial resources accordingly.Apart from these two basic financial statements, there is a need to know about movements of funds and changes in the financial position of the company.Apart from these companies whose shares are listed on the stock exchange, are required to publish quarterly results to ascertain the profitability and financial position at the end of every three months period.These incentives may be broadly classified as financial and non financial.