Accounting for IGCSE & O level - Advanced Principles (Section 8 - No. 33)
What is the main goal of financial statements?
Provide investors with information for making investment decisions.
Show the financial position and performance of a business.
Ensure the business is able to pay its suppliers on time.
Help managers to determine their salaries.
Explication
Financial statements are primarily intended to inform stakeholders and assess the financial position and performance of a business. While the information can indirectly assist in managing payables and setting salaries, these are not the primary goals.