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State four importance of a firm preparing a balance sheet.

State four importance of a firm preparing a balance sheet.

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kinyua
-Enables management to make decisions.
-Creditors to assess credit worthiness of a firm/ability to repay a loan/meet their claims.
-Investors used to assess a viable investment/attract investors.
-Enables Government to calculate tax payable/determine the tax to pay.
-Use to assess business growth.
-Use for comparison purposes.
-Used to source external funding.
monica20 answered the question on October 14, 2017 at 10:02

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