The demand for relevant and reliable financial information stems from the needs of the internal and external stakeholders.

Question

Quizplus · Accepted Answer

Internal stakeholders, such as management and employees, need financial information to make informed decisions regarding the operations and performance of the organization. External stakeholders, such as investors, creditors, and regulatory agencies, require reliable financial information to assess the financial health and future prospects of the organization, making decisions about investment, lending, and compliance.

The Demand for Relevant and Reliable Financial Information Stems from the Needs