Accounting and Financial Management

Running head: ACCOUNTING AND FINANCIAL MANAGEMENT
Accounting and Financial Management
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1ACCOUNTING AND FINANCIAL MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
Literature Review.......................................................................................................................2
Financial Performance...........................................................................................................2
Financial Statement Analysis.................................................................................................3
Financial Distress...................................................................................................................3
Bankruptcy.............................................................................................................................4
Research Questions....................................................................................................................4
Proposed Research Methods......................................................................................................5
Expected Results........................................................................................................................7
Conclusion..................................................................................................................................7
Timetable....................................................................................................................................8
Reference....................................................................................................................................9

2ACCOUNTING AND FINANCIAL MANAGEMENT
Introduction
Existence of the industry is influenced by various macro-economic and business
factors under which the operations of the company is based. Failure of business affects the
various parties involved which can cost the company and create substantial loss for the
companies. Financial analysis of the companies can be well evaluated with the help of the
valuations of the operational and financial performance of the company so that the prediction
of bankruptcy an uncertain events can be well assessed for minimizing the loss of the
company. Application of various assessment of the company in terms of uncertain events like
bankruptcy can well be predicted with the help of the Altman Z Score and Ohlson’s O-Score
Model (Econ.tohoku.ac.jp. 2019). The primary reason and the benefit for predicting the
uncertain events is to minimize the loss arising from such events and possibly to reduce the
impact of such events on the financial performance and financial position of the company in
the long-term. The research question will be focusing on the use and application of Altman Z
Score and Ohlson’s O-Score for the purpose of predicting bankruptcy in the companies
(Essay.utwente.nl. 2019). The organizations need to be aware of the future financial distress
so that such scenarios do not lead to a decline in the performance of the companies. The
research question aims at application of the better model which can be applied for better
prediction of bankruptcy in companies. Inclusion of various facts and theories in regard to the
research conducted on the application of the models was analysed
(Indianresearchjournals.com 2019).
Literature Review
Financial Performance
The assessment of the financial performance of a company is one of the various tools
which is used in order to ascertain the quality of the organization. The evaluation of the

3ACCOUNTING AND FINANCIAL MANAGEMENT
financial performance of an organization ascertains the deficits so that they can be resolved as
fast as possible.
Financial performance even has a close association with financial management as it is
known to be one of the financial management activities. Arc.hhs.se (2019) explains financial
management to be associated with the establishment and maintenance of the economic wealth
and value. In this manner, financial management even concentrates in the decision making
process by keeping an eye on developing wealth.
One of the key sources of understanding the financial performance has to assess and
observe the financial statements. People.stern.nyu.edu. (2019) cited that by assessing the
financial statements the financial performance of any organization can be understood.
Financial Statement Analysis
According to Altman et al. (2019), the analysis of the financial statement is the
incorporation of the analytical tool and techniques for the generic purposes of the financial
statements and the associated information with the help of which effective projections and
conclusions of the business assessments can be understood.
Altman et al. (2019) addressed that the evaluation of the financial statements are the
integral section of an extensive business analysis. Business analysis is even known to be the
method of assessing the economic outlook and the risks related to the organization. It is
inclusive of the evaluation of the business environment of an organization along with the
financial performance and position of the organization.
Financial Distress
Financial distress is known to be the scenario of an organization, which can be
detected with the help of the assessment of the financial reports. The condition of an
organization can be the symbol of caution of a worse scenario, which is even known as