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My home Practice Quiz [non-assessed]

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Why do businesses need financial statements?

Options
A.a. To assess the financial health of a business
B.b. All of the other options
C.c. To provide transparency and accountability to stakeholders
D.d. To make informed decisions regarding investments, loans, and other financial activities
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Question: Why do businesses need financial statements? Option a: 'To assess the financial health of a business' — This is a fundamental purpose of financial statements. They summarize revenues, expenses, assets, liabilities, and equity to gauge profitability, liquidity, and solvency, which in turn reflects overall financial health. Option b: ......Login to view full explanation

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