Which of the following is not a purpose of the annual report?
A)To inform external users about the company's operations during the year.
B)To promote the company to investors in order to attract additional capital.
C)To assemble the numbers to be used by the external auditor to prepare the company's income tax return.
D)To provide the basis for reporting to the SEC on Form 10-K.

Question

Quizplus · Accepted Answer

The purpose of the annual report is to provide information to external users about the company's operations, promote the company to investors, and provide the basis for reporting to the SEC on Form 10-K. However, assembling the numbers to be used by the external auditor to prepare the company's income tax return is not a purpose of the annual report.

Which of the Following Is Not a Purpose of the Annual