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Question:

What are the objectives of preparing financial statements ?

Answer:

The primary objective of a financial statement is to provide financial information about the company such that it can help the stakeholders and other users take economic decisions including past performance and current position assessment, predict and judge a company's growth and predict its situation on bankruptcy or any kind of failure.

1) Past Performance and Current Position Assessment
2) Prediction of Net Income and Judging the Growth
3) Prediction of the Bankruptcy of a Business Entity and another Failure
4) Help Stakeholders and other users to make Economic Decisions.


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  • Answered by Ekta Mehta
  • 4 months ago

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