The primary purpose of financial reports is to
A) reflect a company's profitability.
B) measure a company's current market value.
C) indicate to users the best organization in which to invest.
D) provide useful information in making economic decisions.
E) reflect a company's ability to generate cash.

Question

Quizplus · Accepted Answer

The primary purpose of financial reports is to provide useful information to a wide range of users (investors, creditors, management, etc.) in making economic decisions. This includes assessing the performance, financial position, and cash flows of a company, among other aspects.

The Primary Purpose of Financial Reports Is to