A firm's management analyzes financial statement's so that:

Question

Quizplus · Accepted Answer

Management analyzes financial statements to get feedback on their investing, financing, and working capital decisions by identifying trends in the various accounts that are reported in the financial statements. They can also focus on profitability, dividend, capital appreciation, and return on investment, similar to shareholders. Option C, getting more stock options, is not necessarily the primary reason for analyzing financial statements.

A Firm's Management Analyzes Financial Statement's So That