Which of the following is NOT a reason why users need government and not-for-profit external financial statements?
A)To determine the ability of the entity to meet its obligations.
B)To determine the ability of the entity to continue to provide services.
C)To predict future fiscal solvency.
D)To evaluate the overall profitability of the entity.

Question

Quizplus · Accepted Answer

Not-for-profit and government entities are not primarily focused on generating profits, so evaluating the profitability of these entities is not a primary concern for users. Instead, users typically rely on their financial statements to assess the entity's ability to meet its obligations, continue to provide services, and maintain solvency.

Which of the Following Is NOT a Reason Why Users