In order to assess the financial performance of a company, the financial statements must
A) be prepared on a monthly basis.
B) provide information on management's use of the company's resources.
C) be audited annually.
D) provide information concerning changes in the company's share price.

Question

Quizplus · Accepted Answer

Financial statements are designed to provide information on how management has used the company's resources, which is crucial for assessing the company's financial performance. This includes details on revenue, expenses, assets, liabilities, and equity, among other financial activities.

In Order to Assess the Financial Performance of a Company