General Purpose Financial Statements:
A) are only necessary for users who do not have the power to obtain information in addition to that contained within the General Purpose Financial Statement.
B) provide all the information that users may need to make economic decisions.
C) focus on disclosing information relevant to assessing the ability of an entity to generate future cash flows.
D) meet the information needs that are common to all users.

Question

Quizplus · Accepted Answer

General Purpose Financial Statements aim to meet the information needs that are common to all users, such as shareholders, creditors, investors, and other stakeholders. These statements provide information about the financial position, performance, and cash flows of an entity, which is crucial for making economic decisions. The statements do not provide all the information that users may need, but they disclose information that is relevant to assessing the entity's ability to generate future cash flows. Therefore, option D is the correct choice.