Question

how is analysis of financial statements important to the government​

Answer 1

Answer:

The most important benefit if financial statement analysis is that it provides an idea to the investors about deciding on investing their funds in a particular company. ... Financial statement analysis is helpful to the government agencies in analyzing the taxation owed to the firm...

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Answer 2

Answer:

Financial statement analysis can be referred as a process of understanding the risk and profitability of a company by analyzing reported financial info, especially annual and quarterly reports.

Explanation:

Advantages of financial statement analysis

The different advantages of financial statement analysis are listed below:

▪︎The most important benefit is that it provides an idea to the investors about deciding on investing their funds in a particular company.

▪︎Financial statement analysis is helpful to the government agencies in analyzing the taxation owed to the firm.

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