Through which statements the corporate
management communicates financial information
to its owners and various other external parties?
Answer & explanation
Correct answer: option 4
Financial statements are the basic and formal
annual reports through which the corporate
management communicates financial information
to its owners and various other external parties
which include investors, tax authorities,
government, employees, etc. These refer to: the
balance sheet (position statement) as at the end of
accounting period, the statement of profit and loss
of a company and the cash flow statement.