Financial statements prepared by non-reporting entities are known as:
A) Entity financial statements
B) Special purpose financial statements
C) Quarterly mandated financial reports
D) General purpose financial statements

Question

Quizplus · Accepted Answer

Financial statements prepared by non-reporting entities, such as private companies, can be classified as "special purpose financial statements" because they are prepared for a specific purpose, such as for internal use or to fulfill the requirements of certain regulatory bodies or lenders.

Financial Statements Prepared by Non-Reporting Entities Are Known As