The rationale for examining ﬁnancial statements is to:

Question

Quizplus · Accepted Answer

The main reason for examining financial statements is to extract key information that can be used for future decision making. This information includes financial ratios, trends, and insights into the financial health of the company. While accuracy and adherence to GAAP are important, they are not the primary rationale for examining financial statements. Considering what went wrong may be a reason to examine financial statements after a problem or issue arises, but it is not the primary rationale. Maintaining consistency is also not a primary rationale for examining financial statements.

The Rationale for Examining ﬁNancial Statements Is To