BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Financial performance
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Business
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Accounting transactions
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Creditor’s’ expectations
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Detailed explanation-1: -Financial statements provide a snapshot of a corporation’s financial health, giving insight into its performance, operations, and cash flow. Financial statements are essential since they provide information about a company’s revenue, expenses, profitability, and debt.
Detailed explanation-2: -Financial statements show how a business operates. It provides insight into how much and how a business generates revenues, what the cost of doing business is, how efficiently it manages its cash, and what its assets and liabilities are.
Detailed explanation-3: -It reflects the revenue received by the company from its customers, money received from the sale of investments, and the cash incoming in the business from loans. It also shows the cash outflow of the company like the payment of loans, purchase of assets, and the charges incurred during the selling of goods.