G describe the use of the results of the accounting process in security analysis.

Question 1

An analyst see’s only the end product of accounting, so he needs to understand…

Answer 1

…various accruals, adjustments and management assumptions that is found in footnotes and statements MDnA to reflect company’s true performance and what adjustments to data are necessary for appropriate analysis.

Question 2

Also, analysts should understand accounting process to…

Answer 2

….catch any BS management is trying to come up with