Why the government is interested in analysis of financial statements of a company or companies?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Both option 1 and 2.
The government agencies need it for price regulations, taxation and other similar purposes. The analysis also provides the basis for many governmental actions relating to licensing, controls, fixing of prices, ceiling on profits, dividend freeze, tax subsidy and other concessions to the corporate sector.