The owners of a small entity, such as a sole trader, have greater access to the entity's accounting information than the equity participants of a large entity such as a public company. However, for the purposes of financial statement analysis, the accounting information needs of equity participants are the same.

Question

Quizplus · Accepted Answer

Both small entity owners and large entity equity participants require financial information to make informed decisions regarding their investments, assess financial health, and plan for the future, despite the difference in their access to information.

The Owners of a Small Entity, Such as a Sole