Which of the following statements is NOT true of parties interested in a company's financial accounting?
A) In smaller companies,managers and owners may be the same people.
B) All parties share the same interest in the company's accounting.
C) They assess past financial performance.
D) It is difficult for financial statements to meet the needs of all users.

Question

Quizplus · Accepted Answer

The statement "All parties share the same interest in the company's accounting" is not true. Different parties have different interests in a company's financial accounting. For example, shareholders may be interested in financial statements to assess the company's profitability and future prospects, while lenders may be interested in financial statements to assess the risk of providing loans to the company.

Which of the Following Statements Is NOT True of Parties