Under SAC 1, which entity is the least likely to have users dependent on general-purpose financial reports?
A) A company which is listed on the stock exchange.
B) A small proprietary company whose shareholders also run the business.
C) A company with a large number of shareholders.
D) A company which issues debentures to the public.

Question

Quizplus · Accepted Answer

A small proprietary company whose shareholders also run the business is the least likely to have users dependent on general-purpose financial reports as they have a more intimate knowledge of the company's operations and financial position. Listed companies, companies with a large number of shareholders, and companies issuing debentures to the public are more likely to have a wider range of users who rely on general-purpose financial reports.

Under SAC 1, Which Entity Is the Least Likely to Have