WHY IS IMPORTANT TO DO THE PERFORMANCE ANALYSIS?

This paper deals with the importance that should be given to the performance analysis, mainly the one of the profit and loss account, for being able to take the best financial decisions. Profit and loss account is considered the tool that measures business performance. Although appears a question mark on the confidence you need to attach to this result because it arises from the application of the accounting standards and regulations. And there are many possibilities for recognize revenues and expenses, cutoff, income or revenue, expenditure connection, which asks a little caution about the importance given. The aim of the paper is to see how helps the economic analysis in the process of decisions making.