How To Refute The Following Statement To Be Evaluated:
Financial statements are useless because they are incomplete. Not all assets or liabilities are in included.
The question should not be whether financial statements are useful or are not, but rather, the degree of usefulness. Financial Statements are useful and progressive tools in our economy, providing financial markets transparency and efficiency. This is done by helping investors make educated investment decisions by providing them information on a company’s performance and financial position. Through my experience, I have been taught that the general purpose of financial reporting is to provide financial information about the reporting entity to all potential stakeholders in making decisions, which involves buying, selling, and/or holding equity and/or debt.