Question

Financial statements serve as a basis for management to develop expectations of where the company will be in future periods.

Answer 1

The statement is not true.

Step-by-step explanation:

Financial statements are the one which is made by the management of the company and it represents the financial position and the performance of the company at a particular point of time. So, it can not serve as a basis for the management that they could develop the expectation where the company will stand in the future years or periods.