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 primary purpose of financial statements contained in annual reports is to communicate information about the financial health of a company to external users such as investors, lenders, and analysts. While internal managers may also use these statements for decision-making purposes, this is a secondary function.

The Purpose of Financial Statements Contained in Annual Reports Is