Question

What is purpose of preparing Financial statements ​

Answer 1

*To present a true and fair view of financial performance of the business .

*To present a true and fair view of position of the business .

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Answer 2

purpose of preparing financial statement

1. to know the financial position of the business

2. to know the cash flow of the business (in flow and out flow)

3. to take action for future

4. to prepare budget

5.provide various financial information to investors and creditors

6. helpful to management as a means of communicating past successes as well as future expectations

7. to know all business transactions