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Gleaning Important Information from Financial Statements

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The whole point of reporting financial statements is to provide important information to people who have a financial interest in the business — mainly its investors and lenders. From that information, investors and lenders are able to answer key questions about the financial performance and condition of the business. We discuss a few of these key questions in this section. In Chapters 11, 12, and 20, we discuss a longer list of questions and explain financial statement analysis, including using ratios to evaluate financial results.

Accounting For Dummies

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