Which of the following is NOT a reason why users need governmental and not-for-profit external financial statements?
A)To determine the ability of the entity to meet its obligations.
B)To determine the ability of the entity to continue to provide services.
C)To predict future fiscal solvency.
D)To evaluate the overall profitability of the entity.

Question

Quizplus · Accepted Answer

Not-for-profit and governmental organizations typically do not aim to generate a profit, so evaluating profitability is not as relevant for these entities as it is for for-profit organizations. The other options are valid reasons why users need external financial statements for these types of organizations.

Which of the Following Is NOT a Reason Why Users