Which need is the primary influence on the demand for financial information?
A)the need for managers to make decisions that improve organizational effectiveness and efficiency
B)the need for society to maintain an equilibrium of good and services
C)the need for user groups to make decisions regarding resource allocation
D)the need for regulators to control improper business behavior

Question

Quizplus · Accepted Answer

The primary influence on the demand for financial information is the need for user groups to make decisions regarding resource allocation. User groups include stakeholders such as investors, creditors, suppliers, customers, employees, and government agencies. These groups need financial information to make informed decisions regarding their investment, lending, and business relationships with the organization. The other choices (A, B, and D) may have secondary influences on the demand for financial information, but they are not the primary influence.

Which Need Is the Primary Influence on the Demand for Financial