THE ROLE OF THE FINANCIAL-ACCOUNTING DIAGNOSIS IN THE MONITORING OF THE FINANCIAL HEALTH OF THE ECONOMIC ENTITIES

Financial accounting diagnosis is a process, a complex action that involves the identification of the existing dysfunctions at the entity level, the calculation, the measurement and the determination of their influence on the economic-financial activity, but most importantly the prescribing the ther...

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Bibliographic Details
Published in:Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie 2019-06 (3), p.122-127
Main Authors: HADA IZABELA DIANA, HINT (ȘTEFAN) MIHAELA
Format: Article
Language:English
Subjects:
financial accounting diagnosis
financial health of the entity
strengths
weaknesses
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Summary:Financial accounting diagnosis is a process, a complex action that involves the identification of the existing dysfunctions at the entity level, the calculation, the measurement and the determination of their influence on the economic-financial activity, but most importantly the prescribing the therapy, or eliminating potential disturbing factors. The purpose of this article is to illustrate the role of financial-accounting diagnosis in monitoring the health status of economic entities. The research results highlight the major importance of diagnosis as a complex tool for verifying the functionality of an entity used to identify elements that impede the proper course of action by identifying signs of aggravation of the financial health of the entity and prescribing the treatment necessary to carry out within normal limits activity and improvement, providing a specialized insight into the entity's course over a given period. Diagnosis is an important activity that should be done at the level of each entity throughout the entire economic activity, thus leading to the good course of activity.
ISSN:1844-7007
1844-7007