Why is it important to understand how to interpret basic financial statements?

What is financial statements?

The income statement, balance sheet, and statement of cash flows are financial statements that must be submitted. Traders can use these three statements as learning resources to evaluate a company's financial standing and swiftly ascertain its underlying value.

An organization's or corporate entity's income statement is a financial document that provides information on the three essential accounting period components of revenues, profit or loss, and expenses.

Thus, option C is correct.