A friend, who is not an accounting major, is not familiar with the usefulness of accounting information The friend states, Ive seen you prepare financial statements for homework, but how is the information in these statements useful What is useful accounting information Required Prepare a written r...

A companys financial reports should provide useful information about its economic resources its assets and the claims on the entity its liabilities and equity These financial reports can provide capit ...

A friend, who is not an accounting major, is not familiar with the usefulness of accounting information.

Question:

A friend, who is not an accounting major, is not familiar with the usefulness of accounting information. The friend states, “I’ve seen you prepare for homework, but how is the information in these statements useful? What is useful accounting information?”
Required:
Prepare a written response for your friend that identifies and explains useful accounting information.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...