Which of the following is incorrect? A government can be considered to be a user of the general purpose financial statements because
A) it is the basis for the calculation of taxes owed to the government.
B) it can determine whether certain regulations have been complied with.
C) to gain a better understanding of the entity's activities.
D) governments need to assess the entity so that they can provide the entity with grants that will benefit society.

Question

Quizplus · Accepted Answer

General purpose financial statements are primarily used by stakeholders to make economic decisions rather than for calculating taxes owed to the government. Taxes are typically calculated based on tax returns and other specific financial information provided to tax authorities, not on general purpose financial statements.

Which of the Following Is Incorrect? a Government Can Be