BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to show the value of the shares in the company
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to provide information on financial performance and financial position of a business
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to help management hiring additional work forces
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to show managers the results of their departments
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Detailed explanation-1: -The objective of financial statements is to provide information about the financial position, performance and cash flows of an enterprise that is useful to a wide range of users in making economic decisions. 13.
Detailed explanation-2: -Objective of financial statements That information, along with other information in the notes, assists users of financial statements in predicting the entity’s future cash flows and, in particular, their timing and certainty.
Detailed explanation-3: -Here are some objectives of financial statements: These statements show an accurate state of a company’s economic assets and liabilities. External stakeholders like investors and authorities generally do not possess this information otherwise. They help in predicting the extent of a company’s capacity to earn profits.
Detailed explanation-4: -The main objective of financial statements is to provide information about the earning capacity of the business and cash flows.