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Please answer the following question: "Your grandmother
sends you a large check for your birthday, asking that you
use the money to buy shares of stock in a company. She
recommends that you review the company's financial
statements before investing. What can a company's financial
statements tell you about the investment potential of its
stock?"
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Answer Posted / santosh kandel
The objective of making annual financial report is to reveal the exact financial status of a co. so that the board can take significant decisions for the future benifit of a co. Hence, we can detect the financial reports viz., P/L a/c, balance-sheet, cash-flow statement, value of the share-market of the related co. etc by which we may make an appropriate decision upon our investments.
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