Question

Do you agree with the response below? why or why not explain.

Security and Exchange Commission requires itemized revelation about budgetary position, working outcomes and the executives pay about the organization, along these lines, organizations are required to present its monetary record and salary explanation. Asset report reflects what and how much an organization possesses and owes at a fixed point in time. Salary articulation reflects gaining and consumption that an organization made over some undefined time frame.

They expect to assist the potential financial specialists with understanding the organization profit and money streams. It's exceptionally amazing data for speculators. With the utilization of numerous proportions determined from budget reports, precedent Debt-to-value proportion, Inventory turnover proportion, P/E proportion, Working Capital, a financial specialist can assess the organization. Any change that occurs in resources and liabilities on the monetary record is additionally appeared in the income and consumption on the salary articulation, which mirrors the organization's increase and misfortunes. In this manner goes about as a groundbreaking educational device for speculators.

Answer 1

I agree with the response above. First of all, the itemised revelation about the budgetary position will help to decide what to produce. It helps to decide future production in a profitable way. The assessment of the working outcome helps to produce what is required and reject the production of unprofitable products.The revelation of the payment to the employees helps to calculate the cost of the production and the output.The salaries given,the consumption of the organisation and the profit expose the total internal and external potentiality of the organisation.It is helpful to adjust the money stream in the future.Thus help the overall development of the organisation.