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The next step taken by a financial manager.The company must prepare the financial statements at the conclusion of the accounting year in order to understand its financial condition and the economic.
A balance sheet, income statements, a statement of cash flows, and occasionally the owner's equity are all included in financial statements, which are written reports created by a company's manager to show the business activities, financial performance, and financial standing or position at any time.To evaluate a company's performance and make accurate predictions regarding the future of the company's stock price, financial analysts rely on financial data.An annual report, which displays a company's reliable and audited financial data (which must have been examined by the government or accountants to assure its accuracy for tax, or investing purposes), can be discovered to contain a company's financial statement.Therefore, after the source papers have been reviewed, documented, and posted, a financial statement is a required step.
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