Importance of Financial Statements to National Economy: The rise & growth of the corporate sector, to a great extent, influences the economic progress of a country. Unscrupulous & fraudulent corporate managements shatters the confidence of the general public in joint stock companies which is essential for economic progress & retard economic growth of the country. Financial Statements come to rescue of general public by providing information by which they can examine & asses the real worth of the company & avoid being cheated by unscrupulous persons.

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