What is the primary challenge for financial reporting?
A)to stay relevant to the needs of investors
B)to stay relevant to the needs of lenders and creditors
C)to stay relevant to the needs of other financial statement users
D)both A & B
E)all of the above

Question

Quizplus · Accepted Answer

Financial reporting needs to balance the needs of investors and lenders because they are the primary users of financial statements. However, it's also important to consider the needs of other stakeholders, such as employees and regulatory bodies, to ensure that the financial statements provide a holistic view of the company's financial standing. Therefore, both options A and B are correct, making D the best choice.

What Is the Primary Challenge for Financial Reporting