Users of financial statements are assumed to have no knowledge of business and financial accounting matters by financial statement preparers.

Question

Quizplus · Accepted Answer

Financial statement preparers assume that users have basic knowledge of business and financial accounting matters, as they are intended to provide information for decision-making by investors, creditors, and other stakeholders. However, some users may have more expertise in these areas than others, and financial statements may need to be presented in a way that is easily understandable by a broad range of users.

Users of Financial Statements Are Assumed to Have No Knowledge