Answer some question Research Paper Example | Topics and Well Written Essays - 250 words

Answer some question - Research Paper Example The annual reports provide a detailed account of the operations of the corporations and disclosure of corporation’s financial position (Sherman 64). Basically, the annual reports contain income statement, balance sheet, cash flow statements and statements of shareholders equity. Financial ratio analysis guides the equity investors in assessing the performance of their investments. It helps them to compare the performance of their companies over time and across the industry. In regard to the short term creditors, financial ratio analysis enables the creditors assess the potential of the company to meet its short term credits obligations (Sherman 82). On the other hand, financial ratio analysis will enable long term creditors to assess the company’s ability to repay the borrowed loans and loan interest within the stipulated time. When making an investment by depositing money in the bank that pays compound interests, it is better to choose an option that results to frequent compounding. Therefore, the best option in this case is the one that pays compound interests on a daily basis (Sherman 109). This is because compounding the interests daily results to additional capital from the interest earned for the next