Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 2 - No. 1)

Which of the following statements accurately describes the objective of financial statements?

To provide a snapshot of cash flow.

To assess a company's profitability and financial position.

To help manage a company's internal operations.

To minimize a company's tax obligations.

The main purpose of financial statements is to provide information about a company's financial performance and position.