What
kind of information is provided by Financial Statements?
1.
Historical Information: Financial statements presentation
of historical data and does not deal with the future of the entity.
2.
Financial Information: financial statement mainly provides
the financial information and only limited non financial information is
disclosed in the financial statements.
Can
Historical information be used for Decision Making?
Yes historical information provides some bases for
future decision. For example with the help of the historical information you
can determine different trends and on the bases of that trend you can predict
the values. This technique is known as forecasting.
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