An entity likely to have users who rely on general purpose financial reports is known as a:
A)parent company
B)holding company
C)consolidated entity
D)reporting entity

Question

Quizplus · Accepted Answer

A reporting entity is an entity that prepares general purpose financial reports, which are intended for users who are interested in the entity's overall financial position and performance. These users may include investors, creditors, customers, employees, regulators and the general public. Both parent and holding companies are examples of entities that may prepare consolidated financial reports, which are intended for internal management purposes rather than for external general purpose financial reporting.

An Entity Likely to Have Users Who Rely on General