BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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investor
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manager
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bank
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stockholder
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Detailed explanation-1: -Managers use financial statements to help them better understand their company’s performance. To do so, they use financial ratios to compare numbers from one year to another, across departments, with industry averages and so on.
Detailed explanation-2: -The three financial statements that are most commonly used to make a business decision are the Balance Sheet, the Profit and Loss account (also known as a “P&L” or “Income Statement”), and the Cash Flow statement.
Detailed explanation-3: -The most important financial statement for the majority of users is likely to be the income statement, since it reveals the ability of a business to generate a profit.
Detailed explanation-4: -3 Financial Statements Used by Managers The balance sheet provides a snapshot of a company’s financial health for a given period. It lists the assets, liabilities, and equity line by line for the period so that stakeholders can understand the breakdown.