#cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
In evaluating financial reports, analysts typically have a specific economic decision in mind.
Examples of these decisions include the following:
Extending credit to a customer.
Examining compliance with debt covenants or other contractual arrangements.
Assigning a debt rating to a company or bond issue.
Valuing a security for making an investment recommendation to others.
Forecasting future net income and cash flow.