An example of a reporting entity is likely to be a:
A) public company.
B) partnership.
C) family trust.
D) small proprietary company.

Question

Quizplus · Accepted Answer

A reporting entity is an organization or enterprise that prepares financial statements for external users, such as investors, lenders, and regulatory agencies. Public companies are required by law to prepare and publish financial statements that comply with accounting standards, and are therefore an example of a reporting entity. Partnerships, family trusts, and small proprietary companies may not be subject to the same requirements and may not prepare financial statements for external users.

An Example of a Reporting Entity Is Likely to Be