THE RELATIONSHIP BETWEEN FINANCIAL ACCOUNTING DIAGNOSIS AND ECONOMIC-FINANCIAL ANALYSIS

Abstract

In monitoring health status of the entity, as well as making any financial - economic activity, entity must know resources to assess risks that may affect the activity, to fix the vulnerability in front of the environment, to measure weaknesses, possibilities for development, thus leading to the smooth implementation of the objectives and the development of the enterprise. The need for risk assessment brings with it the necessity of carrying out economic and financial analysis and the financial accounting diagnosis. Given the confusion between analysis and diagnosis, this article proposes to establish the relationship between these two tools commonly used by that entity. Research results show that the financial accounting diagnosis is used in addition to the economic financial analysis, through its ability to identify signs of worsening financial health entity and prescribing treatment required deployment within the normal range of activities and improve its image, providing a specialized entity of the journey in a given period.

Keywords

• economic-financial analysis
• financial accounting diagnostic
• analysis and diagnosis