Which of the following statements BEST defines financial statements?
A) Financial statements are the information systems that record and measure business transactions.
B) Financial statements are the verbal statements made to business news organizations by chief financial officers.
C) Financial statements are documents that report on a business in monetary terms, providing information to help people make informed business decisions.
D) Financial statements are plans and forecasts for future time periods.

Question

Quizplus · Accepted Answer

Financial statements are documents that report on a business in monetary terms, providing information to help people make informed business decisions. They include the balance sheet, income statement, and cash flow statement. Option A is incorrect as it defines accounting systems, not financial statements. Option B is incorrect as it relates to oral statements rather than written documents. Option D is incorrect as it refers to projections rather than historical data.

Which of the Following Statements BEST Defines Financial Statements