The preparation of financial statements requires that the information be understandable
A) Only to CPAs.
B) To those willing to spend the time to understand it.
C) Only to those who take an accounting course.
D) Only to financial analysts and brokers.

Question

Quizplus · Accepted Answer

Financial statements should be prepared in a manner that can be easily understood by their users, including investors, creditors, regulators, and other interested parties. It is not necessary for the users to be CPAs or have taken accounting courses. However, they need to be willing to spend the time to understand the information presented. Financial analysts and brokers may also use financial statements but are not the only intended audience for financial statements.

The Preparation of Financial Statements Requires That the Information Be