Question

________________ are the backbone of capitalism and allow investors, lenders, and regulators to measure the performance of a business. a. Government policies b. Financial statements c. Stock prices d. Credit reports

Answer 1

Answer:

b. Financial statements

Explanation:

Financial statements are the collective summary of the reports which displays the financial results of an organization, cash flows, and financial position.

The financial statements helps in determining the ability of a business to perform cash related activities like generate cash, and it's uses.

It also determines the capability of an organisation to pay back its debts.

The standard attributes of a financial statements are:

Balance sheet

Income statement

Statement of cash flow etc.