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  One of the most important uses of these statements is to evaluate past performance and project future performance. Investors use the financial

 

One of the most important uses of these statements is to evaluate past performance and project future performance. Investors use the financial statements in many ways.

Address one of the following prompts in a brief but thorough manner.

  • What are the major financial statements and what types of information does each provide the user? Who and what are the potential users of these types of financial statements? 
  • What is a pro forma financial statement and what types of information does it provide the user?
  • Who and what are the potential users and uses of these types of pro forma financial statements?

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