When the people who provide the money to a business are different from the people who manage the business, which financial reporting objective becomes important?

Question

Quizplus · Accepted Answer

When the people who provide the money to a business are different from the people who manage the business, the financial reporting objective of stewardship becomes important. Stewardship is concerned with ensuring that the management of the business is accountable and responsible for the resources entrusted to them by the investors or owners. This requires financial reporting that accurately and fairly represents the financial performance and position of the business.

When the People Who Provide the Money to a Business