An entity where it is reasonable to expect the existence of users dependant on general- purpose financial reports for information to use in economic decision making is known as a:
A) public company.
B) large business.
C) reporting entity.
D) non-reporting entity.

Question

Quizplus · Accepted Answer

A reporting entity is an organization that produces financial reports that are likely to be used by external users for economic decision-making. This includes public companies and large businesses, but also includes non-public companies, non-profit organizations, and government agencies that produce financial reports that are relied upon by users outside of the organization. Therefore, the most appropriate answer is C.

An Entity Where It Is Reasonable to Expect the Existence