Different users of financial statements focus on the different parts of the financial statements for the information they need.

Question

Quizplus · Accepted Answer

Different users of financial statements have different information needs and therefore focus on different parts of the financial statements. For example, investors may focus on the income statement and balance sheet to evaluate the profitability and financial position of the company, while creditors may focus on the cash flow statement to assess the company's ability to generate cash flow to repay its debts.

Different Users of Financial Statements Focus on the Different Parts