A person who prepares, analyses and interprets financial statements is known as a/an
Answer Details
A person who prepares, analyses, and interprets financial statements is known as an accountant. An accountant is a professional who is highly trained in the field of accounting, which involves managing financial records, summarizing financial positions, and ensuring compliance with financial regulations.
Here is why the role of an accountant is important:
Preparation of Financial Statements: Accountants prepare financial statements like balance sheets, income statements, and cash flow statements, providing a comprehensive view of an organization's financial health.
Analysis: They analyze these statements to understand and interpret the financial performance of the business. This helps in identifying trends, forecasting future financial conditions, and making informed business decisions.
Interpretation: Accountants use their expertise to interpret financial data, explaining the significance of the figures to stakeholders, including management, investors, and regulatory bodies.
The role of a cashier is primarily to handle cash transactions. A bookkeeper assists in recording day-to-day financial transactions, and an analyst often focuses on analyzing various data sets and trends rather than specifically preparing financial statements. However, it is the accountant who brings together preparation, analysis, and interpretation of comprehensive financial data.