COURSE

BUS 1102 – Basic Accounting

Discussion 2: External Use of Financial Statements, Importance Of

Based on the analysis of transactions, state which financial statement Balance Sheet or Income Statement is more important to an outside investor when deciding to invest in a potential business. Explain your choice.

SOLUTION  

An outside investor relies heavily on a company’s balance sheet and income statement to make investment decisions and obtain insight into the company’s activities. According to my research and professional judgment, an income statement is becoming an increasingly crucial instrument for swaying the attitude of a third-party investor (Franklin et al., 2020). An investor may get an overview of the company’s financial standing by looking at the balance sheet, which details the assets, liabilities….please click the icon below to purchase the solution at $5