Financial statements are:
A) External reports produced from an organization's information system
B) Never used for internal decision making
C) Only true when they are audited
D) Unimportant reports for most organizations

Question

Quizplus · Accepted Answer

Financial statements are reports that are prepared by an organization's information system for external users such as investors, creditors and government agencies. These reports are used for decision-making purposes by these external users. They provide information on an organization's financial performance and position. While financial statements can also be used for internal decision-making purposes, their primary purpose is to provide information to external stakeholders.

Financial Statements Are