Why economists are interested in analysis of financial statements?

Judge the extent of concentration of economic power To understand pitfalls in the financial policies Both 1 and 2 None of these

Both 1 and 2

The economists, researchers, etc., analyse the financial statements to study the present business and economic conditions. Through the analysis of financial statements of various firms, an economist can judge the extent of concentration of economic power and pitfalls in the financial policies pursued.