Which of the following purposes would financial statements serve for external users?
A)To find information about projected costs and revenues of proposed products.
B)To assess employee performance and compensation.
C)To assist in monitoring consumer needs and price concerns.
D)To fulfill regulatory requirements for companies whose stock is sold to the public.
E)To determine purchasing needs.

Question

Quizplus · Accepted Answer

Financial statements serve the purpose of fulfilling regulatory requirements for companies whose stock is sold to the public. This includes providing information about the financial health of the company, its profitability, and financial position. Other purposes mentioned such as determining purchasing needs or assessing employee performance and compensation are typically internal uses of financial statements.

Which of the Following Purposes Would Financial Statements Serve for External