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Financial statements can mislead a potential purchaser trying to develop an accurate business valuation. True False

asked
User Olovholm
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7.7k points

1 Answer

1 vote

Answer:

TRUE

Step-by-step explanation:

Often financial statements may confuse a potential buyer looking to develop an objective assessment of the company.

  • As part of the assessment phase, a purchaser will review the seller's balance sheet to see if the asset book prices are appropriate.
  • Evaluating a firm is an easy task, culminating in an accurate figure. The aim of assessing an enterprise's worth is to provide a baseline for use in determining the business ' price of the property, by this they attract a potential buyers.

for example, some times companies used to show their asset on the historical prices by this they can manipulate potential buyers.

answered
User David Xia
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8.7k points
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