Discussion Board: Financial Statements and Investment Strategies

This assignment comprises a discussion board thread and two replies, focusing on the significance of financial statement analysis for potential investors. The initial thread (500 words) emphasizes the necessity of evaluating a company's financial statements before investing, highlighting the importance of financial health, and the different components of financial statements. It includes a biblical scripture and references to scholarly sources. The two replies (350 words each) offer constructive feedback and additional insights to the original thread, also incorporating biblical scriptures and scholarly references. The assignment follows APA format, and provides a comprehensive analysis of financial statements and their role in investment strategies.

Running head: DISCUSSION BOARD THREAD AND REPLY
DISCUSSION BOARD THREAD AND REPLY

2
DISCUSSION BOARD THREAD AND REPLY
Thread
Investors are an important section across the businesses as they are the financial powerhouses.
Driving business through allocating funds along progressive segments is the key attribute of an
investor. Therefore, as a potential investor, it is highly recommended for me to evaluate a
company's financial statements before investing. A thorough assessment of these financial
statements can help locate its current market positioning and as a whole the profits or returns
(Hope, Thomas & Vyas, 2017). Locating the financial health of a company is possible through
an efficient analysis of financial statements. Investment is already profitable up to some extent
when it is driven through detailed and comprehensive financial research. Available financial
statements across any business define its operability, present state and set assumptions about its
future. Thus, this process of analyzing financial statements before investing can be considered as
the golden rule. This particular factor describes variations and integrating opportunities that the
company has to offer as a return on investments. The financial statements are developed to guide
its investors across the company in financial terms. Thus, empowering them with additional
support and guidance (Arkan, 2016). These are some of the most suitable conclusions based on
the analysis of financial statements. With the use of financial statement analyzing, the process of
investment has gained more clarity and focus. However, investors should always apply support
to the moralistic and legal companies as God offers this statement. Ephesians 5:11 – “Take no
part in the unfruitful works of darkness, but instead expose them.”
The financial statements are composed of several basic building blocks that collectively provide
large sets of information. Four different types of documents constitute the entire financial
statement of a company. Cash flow statements, balance sheet, statement of owner’s equity and
income statement are the various constituents (Pinson, 2014). Each of these documents includes
a wide variety of information related to the company and its operational dimensions. These
factors are stuffed with adequate responsibilities and sufficient duties for an investor. Thus,
investors like me can use these fundamental results for incorporating better decisions. The
idealization of facts helps investors in building any particular perspective for the structure (Guay,
Samuels & Taylor, 2016). The entire investment process is strengthened through such
provisions. An analysis of these documents increases the overall success factor that is integrated
across the entire investment. Apart from the financial constraints, these documents also suggest

3
DISCUSSION BOARD THREAD AND REPLY
supportive information across the organizational culture and ethical values that are attached to
the companies. Better detailing and orientation across these specified sections, improve the
whole decision-making frequency as well as the spirit of the investor. The businesses are
affected in terms of investments according to their previous year's performances. These
documents use a variety of non-visible liabilities and assets such as legal costs and irregular
expenses. These factors are some of the most crucial factors required for increasing viability. The
challenges are limited and the investor often experiences supportive sentiments (Brown et al.
2019). Thus, I consider the financial statements of a company as one of the most important
sections before conduction any new investment process. It will guide you through and provide
significant help for the investors. Financial statements can be a major source of information
gathering before making an investment deal.
References
Arkan, T. (2016). The importance of financial ratios in predicting stock price trends: A case
study in emerging markets. Finance, Rynki Finansowe, Ubezpieczenia, 79(1), 13-26.
Brown, S., Dutordoir, M., Veld, C., & Veld-Merkoulova, Y. (2019). What is the role of
institutional investors in corporate capital structure decisions? A survey analysis. Journal
of Corporate Finance, 58, 270-286.
Guay, W., Samuels, D., & Taylor, D. (2016). Guiding through the fog: Financial statement
complexity and voluntary disclosure. Journal of Accounting and Economics, 62(2-3),
234-269.
Hope, O. K., Thomas, W. B., & Vyas, D. (2017). Stakeholder demand for accounting quality and
economic usefulness of accounting in US private firms. Journal of Accounting and
Public Policy, 36(1), 1-13.
Pinson, L. (2014). Anatomy of a business plan. Tustin, CA: Out of Your Mind and Into the
Marketplace.

4
DISCUSSION BOARD THREAD AND REPLY
Reply 1
Rhonda, I have checked on your thread and I must say you have done a great job. You have
provided a suitable response over this statement. The fact that there have been major changes and
considerations across the process of making an investment and assessment of a company's
financial statements is a crucial process. It must be taken into account. Although, you must have
added a detailed assessment of the various constituents that are available under this financial
statement domain. It would have created a more deep impact on the whole researching process
(De Villiers & Sharma, 2017). A huge scale of enhancement is also followed by a significant
assessment. It helps in countering the vitiations and encouragement of an understanding based
approach across the process. Other sections that you have included under your thread are
significant but you have missed this portion. Apart from this, there are no such specific details
that may be useful in establishing better communication across the system. Enhancement of this
concept can initiate your learning as we as propagating aspects. You have also included several
genuine resources along with their supportive referencing. These are the key factors for enhanced
education and understanding (Uwuigbe et al. 2016). Your ability to examine financial provisions
is great. You have also included sections such as risk factors and low-risk bargaining that are
truly helpful for the whole system. Your ability to enhance the usage of financial statements
before making any investment has been largely successful. It defines the true obligations that are
available for various sections and operations. The company essentials are also discussed which is
very important. It simplifies the entire investment process and boosts the design fundamentals on
a major scale. Your thread is informative and improves the overall decision-making process
across investment domains (Zeff, 2016). However, an investor should also propose some good
qualities while lending money which is missing from your post. Psalm 112:5 - “It is well with
the man who deals generously and lends, who conducts his affairs with justice.” In this

5
DISCUSSION BOARD THREAD AND REPLY
statement, God states that a person who lends the money for others should always be fair while
helping. There should not be any vices or bad intentions for giving money to other people. The
objectives are allocated by your assessment and impart major significance to the structure. Once
the lacking factors are incorporated, this thread will be enhanced in terms of its usability for all
the investor groups. A large volume of information is supplied by you and it is highly
recognized.
References
De Villiers, C., & Sharma, U. (2017). A critical reflection on the future of financial, intellectual
capital, sustainability and integrated reporting. Critical Perspectives on Accounting,
101999.
Uwuigbe, O. R., Uwuigbe, U., Jafaru, J., Igbinoba, E. E., Oladipo, O., & Oni-Ojo, E. E. (2016).
Value relevance of financial statements and share price: a study of listed banks in
Nigeria. Banks and Bank Systems, 11(4), 135-143.
Zeff, S. A. (2016). The Trueblood Study Group on the objectives of financial statements (1971–
73): A historical study. Journal of Accounting and Public Policy, 35(2), 134-161.

6
DISCUSSION BOARD THREAD AND REPLY
Reply 2
Grace, the thread is highly qualified and detailed. It provides a variety of information across the
investment process to build a more reliable and appropriate instructions manual. You have
assessed several investment instruments across the process to initiate better decision making.
Your research significance is also ideal and directed to the point. However, debt is also an
important concern which should be undertaken in the financial investment process. God has
always made it clear for keeping oneself safe from debt problems. Proverbs 22:7 – “The rich rule
over the poor, and the borrower is a slave to the lender.” The differences are acknowledged
across the investment process and a more organized form of operation is carried out. These
differences are crucial as they integrate with other specific factors and restrict the investment
process. The process used by you to include various financial instruments are well managed and
explained. This makes your analysis detailed as well as helpful in many ways (Jan 2018). The
constituents of your thread are competent enough to develop better investment management
approaches. However, despite high-level clarity and detailed usage of informatics, your thread
lacks simplicity. I would suggest you have a more simplified form of assessment across the next
threads. It will help you enhance the connectivity and considerations across the process. It will
describe the obligations and strategies that are inclined to promote better responses and appraisal
from the investors (Unruh et al. 2016). Defining through simplified measures can create a more
intense impact across the assessment. The fact that there are several instruments for finance
management and guidance through investments is accepted and discussed by you in the thread.

7
DISCUSSION BOARD THREAD AND REPLY
This is a highly favorable significance. It illustrates the objective-driven approach that is being
set for analyzing investment opportunities. The strategies used by you are perfect and support the
whole idea of the thread being informative. It explains the basic nature of this discussion bet
requires a more detailed overview of further considerations (Shroff, 2017). Thus I would also
suggest you encounter these issues and develop efficiently. Apart from these factors, your thread
was great and I enjoyed going through it. It resembles the true significance of an investment
process and the various supportive properties that are also included. As you will overcome the
attributes that are lacking currently, you will be developing throughout this subject. I must say
that you have made a great effort in researching and preparing this thread.
References:
Jan, C. L. (2018). An effective financial statements fraud detection model for the sustainable
development of financial markets: Evidence from Taiwan. Sustainability, 10(2), 513.
Shroff, N. (2017). Corporate investment and changes in GAAP. Review of Accounting
Studies, 22(1), 1-63.
Unruh, G., Kiron, D., Kruschwitz, N., Reeves, M., Rubel, H., & Zum Felde, A. M. (2016).
Investing for a sustainable future: Investors care more about sustainability than many
executives believe. MIT Sloan Management Review, 57(4).