Comiskey & Mulford in 2002 supposed that contemporary financial statements of huge corporations are naturally complicated by lengthy additional cross-references as well ancillaries or footnotes. Although, these kinds of financial statements are useful to equity analyst as it constitutes the basis for recommendations to financial mangers decisions on either selling company shares of stocks, or buying company shares of stocks in the market. On the other hand, a financial statement analyses for creditors are essential basis for financial managers to decide on whether to permit credit to a customer or deny (Berger & Udell, 2003). In other words, careful analyses of financial statements would reveal potential profits, direction of cash flows, monetary status, as well as the likelihood of variations in monetary status (Comiskey & Mulford, 2002).
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