please see the explanation below

Step-by-step explanation

1• In public companies, The FASB is recognized by the Securities and Exchange Commission as the designated accounting standard setter for public companies. It is the organization in charge of the financial reporting of public traded companies.
1.Private companies are not required to publicly disclose financial information, while public companies are required by the Securities and Exchange Commission to file an annual report documenting their performance in detail. The key difference between a public and a private company is that public companies are open to investment by the public. On the other hand, private (or proprietary) companies are not. Being open to investment by the public makes it far easier to raise capital.

2• There are four main financial statements. balance sheets, income statements, cash flow statements, and statements of shareholders' equity. The balance consists of assets, liabilities, and owners' equity. income statements consist of revenue, expense and also comprise of all gains and losses which are not attributable to the ordinary course of the business. Cash flow statements show the cash flow from operating activities, investing activities, and cash flow from finance and statement of shareholders equity The statement includes transactions with shareholders and reconciles the beginning and ending balance of each equity account, including capital stock, additional paid-in capital, retained earnings and accumulated other comprehensive income. The statement shows how the composition of equity (share capital other reserves, and Retained Earnings) has changed over the year.
The financial statements has an interrelationship in that each component of the Financial Statements serves a unique and useful purpose and helps various stakeholders understand the financial health of the business in a more simplified manner and make better decisions, either an investor or a lender, and so on.
Information from financial statements influences business decisions by providing data that enables you to shift your planning and anticipate upcoming cash flow crunches. To get the most from your financial statements, prepare them regularly and base them on thorough, current information. Financial accounting is a way for businesses to keep track of their operations, but also to provide a snapshot of their financial health. By providing data through a variety of statements including the balance sheet and income statement, a company can give investors and lenders more power in their decision-making. The financial statements helps in forecasting.
Financial reporting is a key aspect of modern business. Financial analysis and reporting provide valuable insight, enabling companies to stay compliant while making more efficient decisions about their income or expenditure-focused initiatives.

3.Method of financial statement analysis are 
Horizontal Analysis or Trend Analysis: Comparison of two or more years' financial data is known as horizontal analysis or trend analysis. Horizontal analysis is facilitated by showing changes between years in both dollar and percentage form.
Vertical Analysis and Common Size Statements: Vertical analysis is the procedure of preparing and presenting common size statements. A common size statement shows the items appearing on it in percentage form as well as in dollar form. Each item is stated as a percentage of some total of which that item is a part. Key financial changes and trends can be highlighted by the use of common-size statements. Vertical analysis is the procedure of preparing and presenting common-size statements. A common size statement shows the items appearing on it in percentage form as well as in shilling form. Each item is stated as a percentage of some total of which that item is a part. Key financial changes and trends can be highlighted by the use of common-size statements. Common size statements are particularly useful when comparing data from different companies
Ratio analysis is the method or process by which the relationship of items or group of items in the financial statement are computed, determined, and presented. Ratio analysis is an attempt to derive quantitative measures or guides concerning the financial health and profitability of business enterprises. Ratio analysis can be used both in trend and static analysis. There are several ratios at the disposal of an analyst but the group of ratios he would prefer depends on the purpose and the objective of analysis. While a detailed explanation of ratio analysis is beyond the scope of this section, we will focus on a technique, which is easy to use. It can provide you with a valuable investment analysis tool. This technique is called cross-sectional analysis
Gearing/Leverage/Capital Structure Ratio
The ratio indicates the extent to which the firm has borrowed fixed charge capital to finance the acquisition of the assets or resources of the firm. The two basic gearing ratios are:
a)Debt/equity ratio
This ratio indicates the amount of fixed charge capital in the capital structure of the firm for every one shilling of owners capital or equity 
b) Fixed charge to total capital ratio
Profitability Ratio
This ratio indicate the performance of the firm about its ability to derive returns or profit from investment or the sale of goods i.e. profit margin or sales Profitability about sales The ratio indicates the ability of the firm to control its cost of sales, operating, and financing expenses .They include: Gross profit margin
liquidity ratios-Also called working capital ratios. They indicate ability of the firm to meet its short term maturing financial obligation/current liabilities as and when they fall due .e.g current ratio ,quick ratio and cash ratio

4• The characteristics for measuring the effectiveness of investment decisions through capital budgeting are: In anticipation of future profits, investment is made in present times, Investment of funds is made in long-term assets, Future profits accrue to the firm over several years and these decisions are riskier. 

The internal rate of return (IRR) is a method used in financial analysis to estimate the profitability of potential investments. IRR is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis, Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project while the payback period is the number of years it would take to get back the initial investment made for a project. Therefore, as a technique of capital budgeting, the payback period will be used to compare projects and derive the number of years it takes to get back the initial investment.
The payback period determines how long it would take a company to see enough in cash flows to recover the original investment. The internal rate of return is the expected return on a project—if the rate is higher than the cost of capital, it's a good project.
A project or investment's NPV equals the present value of net cash inflows the project is expected to generate, minus the initial capital required for the project. During the company's decision-making process, it will use the net present value rule to decide whether to pursue a project, such as an acquisition.
Companies use IRR to determine if an investment, project or expenditure was worthwhile. Calculating the IRR will show if your company made or lost money on a project. The IRR makes it easy to measure the profitability of your investment and to compare one investment's profitability to another.

5.There are two basic costing systems that help you identify all direct and indirect expenses so you can make well-informed pricing decisions: the traditional costing system and the activity-based costing system. The differences are in the accuracy and complexity of the two methods. Traditional costing is more simplistic and less accurate than ABC and typically assigns overhead costs to products based on an arbitrary average rate. ABC is more complex and more accurate than traditional costing.

6• Effective budgeting helps business owners focus on setting aside money for growing their business, not merely surviving. This focus makes their decisions wiser, because they not only watch the current bottom line, they plan to grow their income for the future bottom line.
.The following are successful budget components used to track and control the decision-making
1.Accurate Forecasting
The business activities may be forecasted accurately to some extent. This is not a starting point. This is mainly required to prepare an accurate budget.
2. Coordination
The business activities are to be coordinated. The reason is that each budget has an impact on other budgets. Hence, there must be coordination among production, sales, purchase, cash, and personnel budgets.
3. Communication
The prepared budgets should be communicated to every employee of an organization. The success of budgeting depends upon the degree of communication. The line managers and their subordinates are not responsible for non-communication and miscommunication of budgets to them. Hence, the budgets are communicated clearly, concisely
4. Acceptance
The employees can accept the budgets. The reason is that they are going to execute them. There is no force used by an organization to accept the budgets of the employees.
5. Cooperation
There is a need for high degree of cooperation for the effective implementation of budgets from the top to the bottom level of an organization.
6. Reasonable Flexibility
Future is uncertainty. Hence, the budgets should contain some reasonable flexibility if the situation so demands. Even though, the budget should not be too flexible and too rigid. The organization cannot exercise control of cost if the budget is much flexible. On the other hand, the employees are frustrated and create problems in the implementation of budgets if the budget is rigid.

Variance analysis is used to assess the price and quantity of materials, labor, and overhead costs. These numbers are reported to management. While it's not necessary to focus on every variance, it becomes a signaling mechanism when a variance is salient.

7.Components of the Sarbanes-Oxley act are the Establishment of the PCAOB Auditor Independence, Corporate Responsibility, Enhanced Financial Disclosures., Analyst Conflicts of Interest 'Commission Resources and Authority, Studies and Reports, Corporate and Criminal Fraud Accountability .The Sarbanes-Oxley Act directs the Securities and Exchange Commission (SEC) to adopt ethical rules for lawyers representing issuers before it deals with actions lawyers should take within the organization when there is evidence of financial fraud.
The Sarbanes-Oxley Act (also known as SOX) tries to reduce unethical corporate behavior. This act established accounting regulations and industry norms that most large businesses follow. Also as a result of this act, top management must certify the accuracy of financial information.

8• The key ways a company embraces social responsibility include philanthropy, promoting volunteering, and environmental changes. Companies managing their environmental impact might look to reduce their carbon footprint and limit waste. Socially responsible companies should adopt policies that promote the well-being of society and the environment while lessening negative impacts on them. Companies can act responsibly in many ways, such as by promoting volunteering, making changes that benefit the environment, and engaging in charitable giving.
Consumers frown upon companies that ignore social responsibility and develop unethical reputations. What's more, companies with these reputations are more likely to stumble into legal troubles, which could result in their failure. In short, companies care about social responsibility because customers do.