Importance of Financial Statements in Investment Decisions

This presentation explores the importance of financial statements in making investment decisions, using a case study on Easy Jet. It discusses the need for managing financial statements, the importance of keeping financial statements for decision-making, and ways to improve investment decisions. The presentation also includes data analysis and a conclusion.

Research Project

Content
 Introduction
 Reserach aims and objectives
 Data analysis
 Data interpretation
 Conclusion
 References

INTRODUCTION
 The term financial statement is a formed record of overall
financial activities of a business.
 It will support to provide actual financial position as well
as information in well structured manner.
 In context of large business entities, financial statement
may be critical and involve an extensive set of
management discussion and analysis

Research aim
“To identify the importance of financial
accounts while making investment decisions”.
A case study on Easy Jet.

Research objectives
 To determine the importance of managing financial
statements.
 To identify the need of making investment decisions.
 To ascertain the need of keeping financial statement for
making financial decisions in Easy Jet ”.
 Recommend the ways through which firms can improve
their investment decisions.

Data analysis
In order to create a questionnaire, the researcher has taken 10
questions and a sample size of 70 respondents. These
respondents are the people who are local residents of UK and
have an experience of Easy Jet; this will support researcher to
make effective decisions and derive better outcomes.

Theme 1: Using services of Easy Jet
A. Since 1 year
B. More than 1 year
C. Less than 6 months
0
5
10
15
20
25
30
35
40
40
20
10
Series1
Q1. How long you have
been taking services of
Easy Jet?
A. Since 1 year 40
B. More than 1 year 20
C. Less than 6 months 10

Theme 2: Necessity of using financial
statement for Easy Jet
60
10
A. Yes
B. No.
Q2. Do you think
managing financial
statements will assists for
business growth and
expansion?
A. Yes 60
B. No. 10

Theme 3: Types of financial statements
A. Balance sheets
B. Cash flow statements
C. Income statement
0
5
10
15
20
25
30
35
20
15
35
Series1
Q3. Which type of
financial statements
are used by the
company?
A. Balance sheets 20
B. Cash flow
statements
15
C. Income statement 35

Theme 4: Factors that can affect investment
decisions of Easy Jet
25
30
105
A. Competitors
strategy
B. Management
Outlook
C. Market forecast
D. Cash flow Budget
Q4. What are the major
factors that can affect
investment decisions of
the company ?
A. Competitors strategy 25
B. Management Outlook 30
C. Market forecast 10
D. Cash flow Budget 5

Theme 5: Advantages of managing financial
statements
A. Maintains business records
B. Facilitates Raising loans
C. Helps in taxation matter
0
5
10
15
20
25
30
35
40
Series1
Q5. What are the advantages
of preparing financial
statements?
A. Maintains business records 40
B. Facilitates Raising loans 18
C. Helps in taxation matter 12

CONCLUSION
 From the above mentioned report, it get comprehended
that financial statements are the crucial aspect of managing
business growth and success.
 It helps Easy Jet to maintain financial records and
information.
 It is essential for users to the study to expand their scope
into other areas or regions.

REFERENCES
Ahmed, A. S. and Duellman, S., 2011. Evidence on the role of accounting
conservatism in monitoring managers’ investment decisions.
Accounting & Finance. 51(3). pp.609-633.
Arnold, V. and et. al., 2012. The impact of tagging qualitative financial
information on investor decision making: Implications for XBRL.
International Journal of Accounting Information Systems. 13(1).
pp.2-20.
Brigham, E. F. and Houston, J. F., 2012. Fundamentals of financial
management. Cengage Learning.

THANK YOU