Week 10 Reading Reflection

For this week's reading on financial information and things to take into account when preparing a financial statement, what surprised me the most and definitely what I did not see coming was the sheer amount of components and information that has to be considered in order to produce an accurate and informational income statement. Given that I am a finance major and have taken a lot of finance major classes, I have been recently exposed to a few of these concepts and therefore am pretty familiar with what some of them mean, therefore I did not really find anything that was specifically confusing. If I could ask the authors a couple of questions, they would be when making a pro forma statement, how can the company account for future intangibles and unpredictable events such as markets. Also, how does one determine which of all the ratios is the best fit in order to get a precise picture of the company's financials, or do they vary depending on what you look at? Is there a general approach to this? Lastly, I did not happen to disagree with anything that I found in this chapter, everything seems sound and it all makes sense.