Question

In general terms, why are financial statements important? (Alternatively, if you believe they are not important, explain why not.)

Answer 1

Financial statement are important in every sense. Companies show they performance on finnancial statements. Investor scan judge how better the management is running business . Banks check the financial health of the company and decide to give loan or not. Regulators keep eye on accounting manipulation and false representation of any made. In a sense financial statements are the tools by which company communicates with the stakeholders and deliver their performance.