Final answer:
Management is responsible for preparing and presenting a company's financial statements. Financial statements provide critical information about the company's financial performance and position.
Step-by-step explanation:
The responsibility for a company's financial statements lies with management. Management, which includes executives and other senior leaders, is responsible for preparing and presenting the company's financial statements in accordance with accounting principles and regulations. They also oversee the accuracy and completeness of the financial information disclosed in the statements.
Financial statements provide critical information about a company's financial performance and position, such as its revenues, expenses, assets, liabilities, and equity. These statements are typically prepared on a regular basis, such as quarterly or annually, and are used by investors, shareholders, lenders, and other stakeholders to assess the company's financial health and make informed decisions.
Management is accountable for ensuring that the financial statements are prepared in a transparent and objective manner, reflecting the company's true financial position and performance. They must adhere to generally accepted accounting principles (GAAP) or international accounting standards (IFRS) to ensure consistency and comparability of financial information.