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Why Is Important To Do The Performance Analysis?

Author

Listed:
  • Maria-Mădălina VOINEA

    (Doctoral School of Economics and Business Administration, ¨Alexandru Ioan Cuza¨ University of Iaşi)

Abstract

This paper deals with the importance that should be given to the performance analysis, mainly the one of the profit and loss account, for being able to take the best financial decisions. Profit and loss account is considered the tool that measures business performance. Although appears a question mark on the confidence you need to attach to this result because it arises from the application of the accounting standards and regulations. And there are many possibilities for recognize revenues and expenses, cutoff, income or revenue, expenditure connection, which asks a little caution about the importance given. The aim of the paper is to see how helps the economic analysis in the process of decisions making.

Suggested Citation

  • Maria-Mădălina VOINEA, 2015. "Why Is Important To Do The Performance Analysis?," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 7, pages 593-596, April.
    • Handle: RePEc:cmj:seapas:y:2015:i:7:p:593-596
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    More about this item

    Keywords

    Performance; Profit and loss account; Financial decisions;
    All these keywords.

    JEL classification:

    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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