Register now or log in to join your professional community.
a. They might want early indications of management decisions
b. They work for or are considering working for the company
c. They are acting as a watch dog for the SEC
d. The IRS hires individuals to secretly audit company financial statements for fraud
b. They work for or are considering working for the company
I think the right answer is B.
The use of financial ratios is a time-tested method of analyzing a business. Wall Street investment firms, bank loan officers and knowledgeable business owners all use financial ratio analysis to learn more about a company’s current financial health as well as its potential.
Although it may be somewhat unfamiliar to you, financial ratio analysis is neither sophisticated nor complicated. It is nothing more than simple comparisons between specific pieces of information pulled from your company’s balance sheet and income statement.
' B 'is the most suited option. General public may show their interest for various reason, but the primary reason could be how a company can be beneficial to them in terms of economic, like the employability, community uplifting and so on. companies with better financial health and potential can lead to more employability and social uplifting through CSR activities.
The purpose of the financial statements is to provide valid information about the financial position, performance and changes of a company. Anyone outside the company such as General Public, may be interested in the effects of a company on the economy, environment and the local community.
So, I believe the answer is A
correct answer is B
thanks
B is the correct answer as per my thinking
......>>>>>>>>>>>>b. They work for or are considering working for the company
