Why is so important the transparency and quality of financial statements, especially the statement of clash...
Why is so important the transparency and quality of financial statements, especially the statement of clash flows, please use your own words and no handwriting please, thanks!
Homework Answers
It is very important that the financial statements of a company are transparent and provide a true and fair picture of the operations of the organisation. Investors should avoid firms which hide information.
When the financial statements are true , it will attract the investors to make an investment into the company. The financial statements should be true and user friendly. Due to the transparency , it will be easier for the investors to invest in the stocks of the company and the risks will be lower.
The investors rely on the cash flow statement more than they rely on any other financial statement, so it very important that the cash flow statement is depicting a true and correct picture of the cash flows of the organisation.
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