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Question
Short Answer Question
State the importance of financial statements to investors.
Solution
Investors these are the parties who have invested or are planning to invest in the business of an enterprise. Hence, in order to assess the viability and prospects of their investments, they need information about the profitability and solvency position of the business.
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RELATED QUESTIONS
Long Answer Question
Explain in detail about the significance of the financial statements
Under which line item of the financial statements following items will be shown:
(i) Sales;
(ii) Loss on Sale of Vehicle;
(iii) Debentures;
(iv) Unamortised Loss on Issue of Debentures (to be written off within 12 months of the date of Balance Sheet);
(v) Encashable Leave Payable at the Time of Retirement;
(vi) Tax Reserve;
(vii) Carriage on Purchases of Stock-in-Trade; and
(viii) Telephone and Internet Expenses?
What are the importance of financial statement?
Short Answer Question
State the importance of financial statement to shareholders.
Short Answer Question
State the importance of financial statement to creditors.
Short Answer Question
State the importance of financial statement to government.
