Question

TRUE OR FALSE
6.IN THE FINANCIAL PLAN , THE BUSINESS PRESNTS ITS ACTUAL OR HISTORICAL FINANCIAL STATEMENTS
7.THE FINANCIAL STATEMENTS CONTAIN ABSOLUTE OR TRUE MONETARY DATA
8.FINANCIAL STATEMENTS ARE CONSIDERED THE FINAL PRODUCT OF THE ACCOUNTING PROCESS
9.THE EARNING CAPACITY OF THE BUSINESS CAN BE EASILY BE DETERMINED BY SIMPLY LOOKING AT THE INFORMATION PRESENTED IN THE FINANCIAL STATEMENTS
10.THE MOST IMPORTANT PART OF THE FINANCIAL STATEMENT ANALYSIS IS THE RESULT OF THE MATHEMATICAL COMPUTATION

PASAGOT NAMAN PO AKO OH,YUNG TUNAY NA SAGOT PO SANA NEED LANG ASAP

Answer 1

6.This is the true

7.True

8.false

9.true

10.false

Answer 2

Answer:

The answers are as follows:

6. True

7. True

8. False

9. True

10. False

Explanation:

Financial Plan-

• A financial plan outlines a person's long-term financial objectives and develops a method for achieving them.
• The plan needs to be thorough but also highly individualised to take the person's personal and family circumstances, risk tolerance, and expectations for the future into account.
• The strategy is the culmination of the plan, which began with a computation of the person's present net worth and cash flow.

Financial Statements-

Financial statements are those that give a true picture of an organization's financial performance at the end of a fiscal year. It serves as a documented record of all financial transactions made within a company. These statements aid information users in assessing the organization's financial status, liquidity, and performance.

Qualitative characteristics of Financial statments-

• Understandability

The data must be simple to comprehend for those who will be using the financial statements. This means that material must be presented in a clear manner, with any necessary supplementary information provided in the supporting footnotes.

Relevance

When the knowledge affects users' economic decisions, it has met the requirement of being pertinent to their needs. Reporting information that is particularly pertinent or information whose omission or misrepresentation may have an impact on consumers' purchasing decisions

• Reliability

The information must be accurate and non-misleading, and it cannot contain any major bias. As a result, the information must accurately depict transactions and other events, reflect the essence of those events, and responsibly portray estimations and uncertainties through adequate disclosure.

• Comparability

In order for users to spot trends in the performance and financial situation of the reporting company, the information must be similar to the financial information reported for other accounting periods.

Hence we can conclude that,

• The financial statements contain absolute or true monetary data
• Financial statements are not considered the final product of the accounting process
• The earning capacity of the business can be easily determined by simply looking at the information presented in the financial statements
• The most important part of the financial statement analysis is not the result of the mathematical computation.

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