Gurjeet SagguGurjeet asked 2 years ago
6 Answers
Auditaudit Staff answered 2 years ago

To determine general consistency of business. 

RaviRavi Staff answered 2 years ago

customers give advances to company for goods they want they will give advance money only to financially sound companies which they will come to know from financial statements
further they are dependent on company for supply of goods so it is important to know financial health and continuity of supply 

Auditaudit Staff answered 2 years ago

Can we give example of banks in.this case

RaviRavi Staff answered 2 years ago

yes bank can be one of the example 
it can be applicable to other businesses also

Auditaudit Staff answered 2 years ago

Sir please give examples of other businesses that the editors use financial statement to determine general consistency

RaviRavi Staff answered 2 years ago

it can be in any business
take example of maruti it is customer for many small ancillary companies which make auto parts, maruti suzuki may give advance and deal with only those companies which are financially sound on the basis of there financial statements
 

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