Answer to Question #197521 in Management for Brenda

Question

The two most important which financial information must have to make it useful are the following

Answer 1

The balance sheet and the income statement.

A balance sheet is a statement of a business's or other organization's assets, liabilities, and capital at a specific moment in time, outlining the balance of revenue and expenditure for the previous period

An income statement is a key financial statement that illustrates a company's profit and loss over a period of time. All revenues are added together and all costs from both operational and non-operating activities are subtracted to define profit or loss.