BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Financial reports that are tailored to the particular information needs of users
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Financial reports intended to meet the needs of users who are not in position to require entity to prepare reports tailored to their particular information needs
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Financial reports provide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decision in their capacity as capital providers
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All above
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Detailed explanation-1: -The chapter notes that objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions relating to providing resources to the entity.
Detailed explanation-2: -7 General purpose financial reporting focuses on providing information to meet the common information needs of users who are unable to command the preparation of reports tailored to their particular information needs. These users must rely on the information communicated to them by the reporting entity.
Detailed explanation-3: -9. The users of financial statements include present and potential investors, employees, lenders, suppliers and other trade creditors, customers, governments and their agencies and the public. They use financial statements in order to satisfy some of their information needs.