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Which financial statement tells the value of a business?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 rohith asked almost 3 years ago

Hello friends, Which financial statement tells the value of a business?Can you explain me.

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3 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Two reasons why the value of a business is not included in the financial statements are: The financial statements are generally based on the company's past recorded transactions.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Two reasons why the value of a business is not included in the financial statements are: The financial statements are generally based on the company's past recorded transactions. The value of the business will more likely be based on the perceived future transactions.

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered almost 3 years ago

Dear Friend, as far as your query is concerned that Which financial statement tells the value of a business? Let me informed that None of the financial statements will report the value of a business. The main financial statements (balance sheet, income statement, statement of cash flows, statement of stockholders' equity) may provide some helpful partial information, but they will not report the value of the business. Two reasons why the value of a business is not included in the financial statements are: The financial statements are generally based on the company's past recorded transactions. The value of the business will more likely be based on the perceived future transactions. The accountants' cost principle prohibits a business from reporting some highly-valued assets such as trademarks, brand names, and an effective management team (assuming these were developed internally). In short, the financial statements provide only some of the information needed when attempting to determine the value of a business. Hope answer was helpful to you Regards, Arjun Pratap Singh

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