The most common user of a private company's financial statements _______.
A)is a bank or other lender
B)are regulatory agencies such as the Internal Revenue Service (IRS)
C)are competing companies
D)are employees of the company

Question

Quizplus · Accepted Answer

Private companies often need to provide financial statements to banks or other lenders when applying for loans or lines of credit. These lenders use the financial statements to assess the company's financial health and creditworthiness, and to determine whether or not to extend credit.

The Most Common User of a Private Company's Financial Statements