For what purpose would shareholders be most likely to use accounting information provided by their firm?
A) gauging whether the firm is generating a satisfactory return on their investment
B) determining whether the firm can repay them for their stock
C) making capital budgeting decisions
D) obtaining information needed to fill out their individual tax returns

Question

Quizplus · Accepted Answer

Shareholders would be most likely to use accounting information provided by their firm to gauge whether the firm is generating a satisfactory return on their investment. This information helps them to make informed decisions about retaining or divesting their shares.

For What Purpose Would Shareholders Be Most Likely to Use