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Asked by George Maillard Jr. on May 31, 2024

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One purpose of financial statement analysis for internal users is to provide information to improve efficiency and effectiveness.

Financial Statement Analysis

The process of examining and reviewing a company's financial statements to make informed business decisions.

Efficiency

The ability to achieve maximum productivity with minimum wasted effort or expense.

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved.

  • Identify the purposes of financial statement analysis for both internal and external users.
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Sherry HightowerJun 03, 2024
Final Answer :
True
Explanation :
Financial statement analysis can provide internal users with insights into areas where the company may be able to become more efficient or effective, such as identifying areas where costs can be reduced or opportunities for increasing revenue. Therefore, one purpose of financial statement analysis for internal users is to provide information to improve efficiency and effectiveness.

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