Question: Maria comes to you for investment advice. She asks, "Which company's stock should I buy? There are so many companies to choose from and I don't know anything about any of them."
Required: Respond to Maria by explaining the two functions of financial accounting. Specifically address the four financial statements reported by companies and the information contained in each. Also explain the role of the auditor in the preparation of financial statements. What advice can you give her about finding a company's stock to buy?