The purpose of financial statements contained in annual reports is to
A)Communicate information about the financial health of a company to external users.
B)Assist internal managers in making pricing decisions.
C)Both communicate information about the financial health of a company to external users and assist internal managers in making pricing decisions.
D)Neither communicate information about the financial health of a company to external users nor assist internal managers in making pricing decisions.

Question

Quizplus · Accepted Answer

The purpose of financial statements is to communicate information about the financial health of a company to external users, such as investors, creditors, and analysts. While financial statements may also be used by internal managers in making pricing decisions, their primary purpose is to provide information to external users.

The Purpose of Financial Statements Contained in Annual Reports Is