Question

explain any two objectives of financial statements​

Answer 1

Answer:

(i) To assess the earning capacity or profitability of the firm.

(ii) To assess the operational efficiency and managerial effectiveness.

(iii) To assess the short term as well as long term solvency position of the firm.

(iv) To identify the reasons for change in profitability and financial position of the firm.

Explanation:

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Answer 2

Answer:

OBJECTIVES OF FINANCIAL STATEMENT ARE-

1.Financial 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.

2.They help in predicting the extent of a company’s capacity to earn profits. Shareholders and investors can use this data to make their financial decisions.