Question: How does accounting convey information?
Accounting conveys financial information through the use of financial statements, such as the balance sheet, income statement, and cash flow statement. These statements provide a summary of a company's financial performance, including its assets, liabilities, equity, revenue, expenses, and cash flows. Additionally, accounting uses financial ratios and other metrics to analyze and interpret financial data, which can help stakeholders to make informed decisions about a company's financial health and future prospects. Ultimately, accounting provides a systematic and organized way to convey financial information to stakeholders, which helps them to better understand a company's financial situation.
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