The users toward which financial statements are directed:
A) are very sophisticated and experienced in using financial information.
B) are independent Public Accountants.
C) have degrees in accounting and finance.
D) have a reasonable understanding of business and economic activities.
E) are Chartered Financial Analysts.

Question

Quizplus · Accepted Answer

Financial statements are usually directed towards users who have a reasonable understanding of business and economic activities. These users may include investors, creditors, management, employees, and government agencies. While having a degree in accounting or finance can be helpful, it is not necessary for understanding financial statements. Similarly, while Chartered Financial Analysts may use financial statements, they are not the only intended audience.

The Users Toward Which Financial Statements Are Directed