Which of the following statements best defines financial statements?
A)Financial statements are the information systems that record monetary and nonmonetary business transactions.
B)Financial statements are the verbal statements made to business news organizations by chief financial officers.
C)Financial statements are documents that report on a business in monetary terms,providing information to help people make informed business decisions.
D)Financial statements are plans and forecasts for future time periods based on information from past financial periods.

Question

Quizplus · Accepted Answer

Financial statements are documents that report on a business in monetary terms, providing information such as income, expenses, assets, liabilities, and equity. They are intended to inform investors, creditors, and other stakeholders in making informed business decisions. Financial statements are typically prepared on a periodic basis, such as annually or quarterly, and can include a balance sheet, income statement, and statement of cash flows.

Which of the Following Statements Best Defines Financial Statements