Different stakeholders have different reporting requirements with respect to general-purpose financial statements. A lender will be more interested in a company's cash flows while an investor will likely be more interested in a company's earnings.

Question

Quizplus · Accepted Answer

This statement is true, as different stakeholders have different needs and interests when it comes to financial reporting. For example, lenders may be more focused on a company's ability to generate cash to pay back loans, while investors may be more interested in a company's overall profitability and growth potential. Other stakeholders, such as suppliers, customers, and regulators, may also have specific reporting requirements based on their relationships and interactions with the company.

Different Stakeholders Have Different Reporting Requirements with Respect to General-Purpose