Question:
Explain why financial statements are important to the decision-making process in financial analysis. Also, identify and discuss some of their limitations for analysis purposes.
See Also
1.1 Individual or “Micro” Factors That Affect Financial ThinkingThe Power of Financial Analysis in Corporate Decision-MakingWhat Does a Financial Analyst Do? | Accounting.comTop Traits to Look for When Hiring Financial AnalystsFinancial Statement and Analysis
Financial statements are business records that show all the business activities in a company. Financial statement analysis involves breaking down the company's financial statements to get meaning and information that will help in decision-making purposes. Stakeholders use the information for various purposes.
Answer and Explanation:1
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The information from the financial statements is important as it is used to calculate the profitability of the company, liquidity and the efficiency...
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