Answer to Question #250907 in Accounting for samantha

Question

In four sentences, properly explain the financial statements (in general) and their significance. 

Answer 1

Financial statements are written documents that describe a company's operations and financial performance. Government authorities, accountants, corporations, and others frequently audit financial statements to verify accuracy and for tax, financing, and investing purposes.

A company's financial statements give a true picture of its financial success. They show assets and liabilities as well as earnings and losses.