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Which financial statement is the most important for investors to look at and why


The most important financial statement for the majority of users is likely to be the income statement, since it reveals the ability of a business to generate a profit. Also, the information listed on the income statement is mostly in relatively current dollars, and so represents a reasonable degree of accuracy.

Which financial statement is most important to investors why?

A company's income statement is the most important financial statement to provide when applying for funding because it reveals whether your business can generate profits.

What financial statements do investors want to see?

Investors will want to see information that indicates the current financial status of the business. Usually they will expect to see current reports such as a profit and loss statement, a balance sheet and a cash flow statement as well as projections for the next two or three years.

Which financial statement best reveals to investors?

Answer and Explanation: Explanation: The balance sheet reveals to investors and creditors information about a company's indebtedness through the liabilities section. Any debt owed by the company will be listed under liabilities.

Which is more important to investors balance sheet or income statement?

The balance sheet contains everything that wasn't detailed on the income statement and shows you the financial status of your business. But the income statement needs to be tallied first because the numbers on that doc show the company's profit and loss, which are needed to show your equity.