The Importance of Financial Statements
- Public companies are required to publish annual financial statements. Suggest the major benefits of companies making financial statement information available to employees. As an employee, discuss what financial information would be of value to you. Provide at least two (2) specific examples on why the information is important.
- Briefly explain generally accepted accounting principles (GAAP), and describe why it is important that public companies follow GAAP when preparing financial statements. Also, give your opinion on whether private companies should be required to follow GAAP. Provide a rationale for your opinion.
Answer PreviewFinancial records helps employees to know how secure their job is and therefore are able to plan ahead in case the company is doing poorly financially. They also help the employees during negotiations of salary and wage…
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