The reports and financial statements prepared by accountants:
A)have lost much of their relevance as firms have moved into a more global environment.
B)are much more useful for profit-seeking businesses than for non-profit organizations.
C)are mainly used to help the firm complete its tax forms.
D)provide information that can be used by decision-makers both inside and outside the organization.

Question

Quizplus · Accepted Answer

Reports and financial statements prepared by accountants provide information that can be used by decision-makers both inside and outside the organization. This information is important for making sound business decisions, determining future investments, analyzing profitability, and assessing financial health. The increasing globalization of firms has only made this information more relevant, as it helps firms navigate complex markets and make strategic decisions. While these reports may be used to help complete tax forms, they serve a much broader purpose in providing valuable information for decision-making.

The Reports and Financial Statements Prepared by Accountants