Financial statements are prepared:
A)Only for publicly owned business organizations.
B)For corporations,but not for sole proprietorships or partnerships.
C)Primarily for the benefit of persons outside of the business organization.
D)In either monetary or nonmonetary terms,depending upon the need of the decision maker.

Question

Quizplus · Accepted Answer

Financial statements are primarily prepared for the benefit of persons outside of the business organization, such as investors, creditors, and government entities. However, internal financial statements may also be prepared for the benefit of management within the organization. The other options given are incorrect statements.

Financial Statements Are Prepared