Financial statements and business decision-making

Abstract

The development of accounting entries represents a mandatory task for all companies, however, it is also an instrument that provides great ease for management since when knowing how the profits or orders of the organization are, how many expenses, investments, liabilities, assets and patrimony it is more feasible to determine the action plan to improve conditions. This article was developed with the objective of describing the importance of financial statements in managerial decision-making processes. The methodology used is that of a quantitative investigation within the documentary design, for which a survey of various sources related to the subject was made. The findings of the statements where the financial situation is expressed, such as the one that shows the economic situation of an entity, is a favorable tool since periodic cuts are made where changes in the income of commercial activities are displayed, which in some organizations that present Negative points allow you to increase assets and equity as a means to rectify the debts acquired as a result of losses.