The most straightforward job of the shareholder is to provide funds. In practice, however, it isnât straightforward at all. Corporations do need capital to invest in growth, but they donât get it in aggregate from shareholders.
Noun. 1. understatement-a statement that is restrained in ironic contrast to what might have been said. statement-a message that is stated or declared; a communication (oral or written) setting forth particulars or facts etc; according to his statement he was in London on that day.
When you're looking for understatement you âtraceâ (may use a diff word) from the source documents to a ledger-type thing. For overstatement, you âvouchâ (again, may use diff word) from the ledger-type thing to the source document. In this case, since you're looking for understatement, you always start with the source document.