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To know the profitability of the company.
To satisfy the shareholders with their investment in the company.
In case of financial sourcing, these statements can be of relevance for the company for instance, banks will need to look at its stand in order to be certain and convinced that their money will be repaid.
What else can I help you with?
What is difference between audited and unaudited balance sheet?
i was looking for the same answer.... so9 here it goes..A financial audit, or more accurately, an audit of financial statements, is the verification of the financial statements of an entity. The opinion is intended to provide reasonable assurance that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework (the GAAS requirements)ANDAn unaudited financial statement is that which an auditor has prepared, but not according to the Generally Accepted Auditing Standards (GAAS). Auditors preparing unaudited statements are required to issue a disclaimer stating that they are not rendering opinions and that the statement does not abide by the GAAS.hope it helped clear the difference!!:)
What is the purpose of an audit?
The purpose of an audit is to add credibility to the financial statements of a business organization.To give credence to the accounting records, accounting polices and financial statements of an audit client.
Why auditors need to be independent?
TO ENSURE THE FINANCIAL STATEMENTS GIVE A TRUE AND FAIR VIEW
What are the disadvantages of consolidated financial statements?
Combining financial statements could be a disadvantage because you cannot see the details that give you the strengths of the company. If you have separate financial statements for the parent and subsidiaries then you can break down a more meticulous analysis for each department and therefore see the basis and solidarity of the company
Disadvantages of financial audits?
Financial statements give an idea about the financial position of the company, however, there are some limitations of the financial statements. The first limitation is that a financial statement ignores the productivity and the skills of the employees in an organization. Management Decision Analysis Report gives an idea about it but financial statements are unable to evaluate the skills which a company has. Secondly, balance sheet does not give timely and relevant information because it is based on historical costs and it does not give a fair idea about the current position of the company. There are different accounting measurement systems therefore, use of different techniques by different companies can make the comparisons of financial statements difficult. Moreover, income statement is considered a fiction because cash is king and income statement ignores this fact.
What are the basic objectives of preparing the trading account?
The basic objective of preparing the trading account is so as to give a clear picture of the financial performance of the company at any one time. It gives details about how profits are being generated and how the debt levels are.
In general terms what does a set of financial statement describe?
Financial Statements could be of a individual or a company/business.Personal Financial statement would give all the personal financial information of the individual, for ex. his years income, sources of his income, his expenses, things he spent on, etc.A company's or business's financial statement would give you the complete idea of the company including the income of the company, the expenses, the amount of money spent on labor, gross profit of the company, net profit, etc.Financial Statements are something that are used by any company requires to check your credit, for ex. you going to buy a car/house, etc.
Is it possible to prepare financial statements without the help of trial balance under accounting for incomplete records You need to give your view point along with proper justification and explain?
no
What is a financial analyst?
A financial analyst is a professional that studies various industries and companies, and provides research and evaluation reports. A financial analyst also makes buy, sell, and hold recommendations.
What is the difference between a formal and an informal proof?
When you give reasons that something is true, but don't necessarily lay it out step-by-step, this is an informal proof. A formal proof, on the other hand, shows step-by-step statements with reasons given for each step.
Can you give the idea for preparing a model on hazards?
can you give idea for a model on hazards
Should parents give their children some financial responsibilities so that they get prepared for future life?
Yes, parents should give their children some financial responsibilities to help them develop essential life skills. Managing a budget, saving for goals, and understanding the value of money can foster financial literacy and independence. These experiences can also teach children the consequences of their financial decisions, preparing them for adult responsibilities and promoting a sense of accountability. Ultimately, early exposure to financial management can empower children to make informed choices in the future.
