Who among the following users of the financial statement of a company may be particularly interested in evaluating whether the company is paying a fair amount of taxes given its reported earnings, and to gain a better understanding of the company's activities?
A)government
B)general pubic
C)employees
D)investors

Question

Quizplus · Accepted Answer

The government is particularly interested in evaluating whether a company is paying a fair amount of taxes given its reported earnings. This is because taxes are a major source of revenue for the government and they want to ensure that companies are not dodging taxes or using loopholes to avoid paying their fair share. Additionally, the government may want to gain a better understanding of the company's activities in order to regulate them effectively.

Who Among the Following Users of the Financial Statement of a Company