18. Why do we need currency exchange market?

25. Why do we need financial reporting? Financial reporting is the way businesses communicate financial data to external and internal stakeholders. External stakeholders — like regulatory agencies, current and potential shareholders and investors, and lenders — use financial reports to draw conclusions about a company's current and future financial health. Financial reporting is the process of documenting and communicating financial activities and performance over specific time periods, typically on a quarterly or yearly basis. Companies use financial reports to organize accounting data and report on current financial status
26. Why should we study financial reporting? Financial reporting is the way businesses communicate financial data to external and internal stakeholders. External stakeholders — like regulatory agencies, current and potential shareholders and investors, and lenders — use financial reports to draw conclusions about a company's current and future financial health. Financial reporting is the process of documenting and communicating financial activities and performance over specific time periods, typically on a quarterly or yearly basis. Companies use financial reports to organize accounting data and report on current financial status
27. Why do we need to know different financial ratios to analyze financial statements? Ratios measure the relationship between two or more components of financial statements. They are used most effectively when results over several periods are compared. This allows you to follow your company's performance over time and uncover signs of trouble. Financial ratio helps a company in tracking its value over time. It helps in determining the trends developing in a company. Its importance can be understood by taking an example of a financial ratio – debt to asset ratio
28. Why do we need simple and compound percents? Simple interest is calculated on the principal, or original, amount of a loan. Compound interest is calculated on the principal amount and the accumulated interest of previous periods, and thus can be regarded as “interest on interest.” As a borrower, simple interest is better because you're not paying interest on interest. It's easier to repay debt with simple interest. Compound interest can help you to build wealth over time because your earnings also earn money.