What can financial statements tell readers?
Financial statements can be used for just about anything the reader wants them to be used for! Financial statements can tell the reader about the economic resources owned by the company, the solvency and liquidity, as well as their ability to obtain financing.
Financial statements also provide a high-level of the operations of the business. Financial statement that contain an MD&A section will provide more information on Managements view of the business and future plans for the business.
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