Financial statements are meaningful and useful only when they are _________

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RRB Paper · Accepted Answer

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Financial statements are meaningful and useful only when they are analyzed and interpreted.
Financial statements tell us about the profit or loss of the business and these also tell us how many assets and liabilities a business has on a certain date.
In other words, these statements tell us the financial position of the business during a certain accounting period.
But we cannot have full information from these statements unless they are analyzed and interpreted.
The analysis and interpretation of the financial statement is a process by means which the data are presented in such a way that we can obtain important information and can take decisions.
Data do not speak and meaningful information can be had only when they are interpreted in a nice way.