Question

1. Do the balance sheet, income statement, and statement of cash flows contain all the information you might want as a potential lender or stockholder? Why or why not?
   
2. What other information would you like to examine (accounting or otherwise), and why would this information be helpful?

Answer 1

No, the balance sheet, income statement, and statement of cash flows does not contain all the information needed by a potential lender or stockholder. It is because the financial statements are twisted as per Generally Accepted Accounting Principals (GAAP). Individual interests are not considered to make the uniform.

Following other information is likely to be examined:-

1..Details of the organization's key members because they are critical for the success of the company.

2.Measures taken by the organization to expand its revenues and profits. It shows a glimpse of the future of the organization's direction they are headed.

3.Impact of non-financial factors like reputation of the business, creditworthiness of the organization. These are vital for the success of the firm.

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