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10 December, 04:10

Financial statements can mislead a potential purchaser trying to develop an accurate business valuation. True False

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  1. 10 December, 04:30
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    TRUE

    Explanation:

    Often financial statements may confuse a potential buyer looking to develop an objective assessment of the company.

    As part of the assessment phase, a purchaser will review the seller's balance sheet to see if the asset book prices are appropriate. Evaluating a firm is an easy task, culminating in an accurate figure. The aim of assessing an enterprise's worth is to provide a baseline for use in determining the business ' price of the property, by this they attract a potential buyers.

    for example, some times companies used to show their asset on the historical prices by this they can manipulate potential buyers.
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