Financial statement information can help customers monitor a supplier's manufacturing processes and thus evaluate the quality of its products.

Question

Quizplus · Accepted Answer

Financial statement information is primarily used to evaluate a company's financial performance and position, and is typically not tied to its manufacturing processes or product quality. Customers would need to gather other types of information or use other evaluation methods to assess a supplier's product quality.

Financial Statement Information Can Help Customers Monitor a Supplier's Manufacturing