Earning Power Analysis on The Basis of the Intermediary Balances of Administration.docVIP

?CONOMICA Finance and Banking Earning Power Analysis on The Basis of the Intermediary Balances of Administration Associate Professor Neculina Chebac, PhD “Danubius” University of Galati Senior Lecturer Carmen Cre?u, PhD “Danubius” University of Galati Abstract: The profit and loss account, within the basic (developed – version) system, allows the establishment of the intermediary results account or of the intermediary balances of administration. Indices involved in the case of the intermediary balances of administration are necessary in making decisions both at the firm level and at that of third parties that are economically and financially related to the firm. Keywords: profit, results account, margin, intermediary balances Jel Classification: M41, H42 The step-like structure of indicators, which starts from the most comprehensive (i.e. accounting period production and mark-up) and ends with the most synthetic one (i.e. accounting period net profit), suggests that these indices formed a series referred to as a cascade of intermediary balances of administration. Each such balance reflects the financial administration result at the respective accumulating stage . 1 The intermediary balance of administration stands for the difference between two values. By way of repeated subs tractions, several indices are obtained i.e. indicators describing profitableness and firm management (some are found as such in the profit 1 Stancu I., Finan?e. Teoria pie?elorfinanciare. Finan?ele ?ntreprinderilor. Analiza ?i gestiunea financiar? (in translation.: Finances. Financial Markets Theory. Firm Finances. Financial Analysis and administration),Ed. Economic? Pbsh., Bucharest, 1996, p.329 123  ACTA UNIVERSITATIS DANUBIUS Nr. 1/2008 and loss account others are calculated as it