Financial statements provide useful information for shareholders to:
A) understand day-to-day activities.
B) decide whether to buy,sell or hold shares of companies.
C) decide whether to lend money to the business entity.
D) create business planning strategies.

Question

Quizplus · Accepted Answer

Financial statements provide information on a company's financial position, performance, and cash flows. Shareholders can use this information to evaluate the company's current and future profitability, liquidity, and stability, which can help them determine whether to buy, sell or hold shares of the company. Financial statements are not primarily intended to provide day-to-day operational information, nor are they typically used for creating business planning strategies. While lenders may also use financial statements to evaluate a company's creditworthiness, this is not the primary focus for shareholders.

Financial Statements Provide Useful Information for Shareholders To