What is meant by Analysis of Financial Statements ? How is it useful to investors and employees ? Explains in brief.

What is meant by Analysis of Financial Statements ? How is it useful t

1.	What is meant by Analysis of Financial Statements ? How is it useful to investors and employees ? Explains in brief.
Answer» 1) Investors : Investors will likely require financial statements to be provided, since they are the owners of the business, and want to understand the performance of their investment. 2) Employees : A company may elect to provide its financial statements to employees, along with a detailed explanation of what the documents contain. This can be used to increase the level of employee involvement in and understanding of the business.