Harold owns a chain of coffee shops. He hires accountants to summarize the information from his company's business transactions into a financial statement. For what reason Harold would use a financial statement?

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Business

Smiley

25 August, 11:30

Harold owns a chain of coffee shops. He hires accountants to summarize the information from his company's business transactions into a financial statement. For what reason Harold would use a financial statement?

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Answers (1)

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Lauryn Howell · Answer 1

Answer: to aid in internal planning and control.

Explanation: A Financial statement can be defined as a formal record of all relevant financial information of a business, person, or other entity presented in a structured and standardized manner to allow easy understanding.

The financial statement will aid the business in drawing out business procedures and methods from information gotten such as cash flow, financial analysis etc.