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

User Olovholm
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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.

User David Xia
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