provide some critical depth of comment supported by quality academic references
ID: 2655199 • Letter: P
Question
provide some critical depth of comment supported by quality academic references that discuss both the practical and theoretical aspects of usefulness of financial statement and other aspects as you see relevant provide some critical depth of comment supported by quality academic references that discuss both the practical and theoretical aspects of usefulness of financial statement and other aspects as you see relevant provide some critical depth of comment supported by quality academic references that discuss both the practical and theoretical aspects of usefulness of financial statement and other aspects as you see relevantExplanation / Answer
The main ingredient of any sound business is to understand , interpret and ability to use the financial information in their favour. The main objective of preparing a financial statement and analyzing is to know how a particular business is performing. Accounting statements are primarily concerned with organization management and financial resources.
The most practical usefulness of financial statement is the reporting of financial results to shareholders, creditors, analysts, regulatory agencies and employees. Owners and managers use financial statements to make long term strategies regarding thier business; wether to continue in particular business or not, to make or purchase certain items or divest certain part of business or not, etc. Investors use financial statements to make investment decisions.Lenders look at financial statements of companies to check wether company will be able to repay their funds.
Government entities need financial statements to check wether compnay follow proper taxation policy. Employees use financial statements to guage the profitability of the company and its consequences on their future compensation.
For more reference follow below mentioned link:
1) http://accounting-simplified.com/purpose-of-financial-statements.html
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