A company's management analyses financial statements so that:
A) they can get feedback on their investing, financing, and working capital decisions by identifying trends in the various accounts that are reported in the financial statements.
B) similar to shareholders, they can focus on profitability, dividend, capital appreciation, and return on investment.
C) they can get more share options.
D) a and b.

Question

Quizplus · Accepted Answer

Management analyzes financial statements to gather feedback on their investing, financing, and working capital decisions by identifying trends in different accounts reported in the financial statements. Additionally, like shareholders, they focus on profitability, dividend, capital appreciation, and return on investment. Therefore, option D is the best choice that combines both valid reasons. Option C is incorrect as getting share options is not a common reason for analyzing financial statements.

A Company's Management Analyses Financial Statements So That