Answer: Its essential to students beacause Financial information is data about the monetary transactions of a person or business. This information is use to derive estimates of credit risk by creditors and lenders.Users of accounting information are internal and external. External users are creditors, investors, government, trading partners, regulatory agencies, international standardization agencies, journalists and internal users are owners, directors, managers, employees of the company.Financial Statements are important. They contain significant information about a company's financial health and business activities. Financial statements help companies make informed decisions. They highlight which areas of the company provide the best ROI (return on investment).
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