Management may have incentive to bias financial information, but the various users of the statements are not likely to have conflicting interests in the financial information.

Question

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The various users of financial statements, such as shareholders, lenders, and employees, may have different interests in the information presented. For example, shareholders may want to see high profits and dividends, while lenders may be more concerned with a company's ability to repay debt. This can create conflicts of interest in how financial information is presented and interpreted.

Management May Have Incentive to Bias Financial Information, but the Various