Why are investors and potential investors interested in financial statement of a company? Explain with suitable examples
Dear student,
Financial statements contain the profit & loss account, balance sheet and cash flow statements.
Investors like: shareholders, creditors, bank etc are interested in financial statements of a company in order to know the profitability of company in order to ensure how much return they will get.
Potential investors are those who wish to invest in company like general public, financial institutions, lenders, etc, they are interested in financial statements of company to know the creditability of company to repay the money along with interest/ dividend.
Regards
Financial statements contain the profit & loss account, balance sheet and cash flow statements.
Investors like: shareholders, creditors, bank etc are interested in financial statements of a company in order to know the profitability of company in order to ensure how much return they will get.
Potential investors are those who wish to invest in company like general public, financial institutions, lenders, etc, they are interested in financial statements of company to know the creditability of company to repay the money along with interest/ dividend.
Regards