ANALYSIS OF FINANCIAL STATEMENTS AS AN AID TO INVESTMENT DECISION MAKING

1.1 Background of the study Corporate organizations owe a duty to fully disclose matters concerning their operations so as to aid investors in making investment decisions. Both large and small organizations in addition to satisfying the legislating requirement tend to retain existing investors and to attract potential ones through the publication of their financial statements where the capital stock of a corporation is widely held and its affairs are of interest to general public relations. (Alhaji, Ayanwuyi&Farayola 2019). The financial statements constitute an adequate report of the economic activities of an institution, (Vardhan, Aruna, &Shilpa, 2018). These are written reviews that quantify the economic performance and liquidity of the institution. It highlights the economic outcomes of the company’s transactions and activities at the institution (Pooja &Kumari, 2019). Important information is usually integrated in financial statements, which is designed for different users, the credibility of accounting information is imperative being a decision support tool for investment. Information such as financial situation, productivity, and cash flows of an organization highlighted in financial statements, is of enormous importance to both external and internal users. (Temitope, 2020). Analysis of Financial Statement focuses primarily on data provided in the firm’s annual reports which contained the Financial Statement and other supplementary information. Significant changes or turning points in patterns, amounts, SWOT, and other relationships were identified during the analysis. Therefore Financial Statement is merely summaries of detailed financial information tha