Question

Why would companies want to use your financial statement?

Answer 1

The important need of financial statement is to provide information about the result of operations,financial position,and cash flows of an organization.this information is used by others to make decisions regarding the allocations of the resources.there is different purpose associated with each of the financial statements.the income statement explains the ability of the business to make profit.similarly,the balance sheet shows the status of the company as on the date of balance sheet.the cash flow statement shows the nature of cash receipts and payments.