The value added statement
A) provides information about the contribution of all corporate stakeholders to the success of the business.
B) is used to determine how much value-added tax corporations pay.
C) is generated primarily for potential investors and shareholders.
D) is provided by the majority of European companies, although it is rarely provided by U.S. firms.

Question

Quizplus · Accepted Answer

The value added statement provides information about the contribution of all corporate stakeholders to the success of the business, including employees, suppliers, and shareholders. It shows how much value has been added to the business through its operations and how that value has been distributed among stakeholders.

B is incorrect because the value added statement is not used to determine how much value-added tax corporations pay.

C is partly correct, as the value added statement is primarily generated for potential investors and shareholders. However, it also provides valuable information for other stakeholders, such as employees and suppliers.

D is incorrect because the value added statement is used by many companies around the world, not only European firms. While it may be more commonly provided by European companies, it is not rare for U.S. firms to provide it as well.

The Value Added Statement