Senior executives do not need to understand the balance sheet and the income statement, only financial and accounting departments need to have this understanding.

Question

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Senior executives should have a basic understanding of financial statements such as the balance sheet and the income statement. This understanding can help them make informed decisions about the company's financial health and future strategies. However, they may not need to be as detailed or technical in their knowledge as the financial and accounting departments.

Senior Executives Do Not Need to Understand the Balance Sheet