With increased computer technology, the ability to read and understand financial statements is no longer an important skill for managers.

a. True

b. False

False, the financial statements are a summary report that shows how a company has used the funds entrusted to it by its shareholders and creditors, and what is its current financial situation. The three basic financial statements are the balance sheet, which shows the assets and liabilities of a company on an established date; income statement, which shows how the net income of the company is obtained in a given period, and the statement of cash flow that shows the cash inflows and outflows produced during the period. It is a practice for companies to present financial statements that adhere to generally accepted accounting principles to maintain the continuity of information and presentation across international borders. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing or investment purposes, making this practice somewhat complex that would not be fully understood using technology.