Employees are considered a primary user of general purpose financial reports when they:
A) purchase goods from their employer on credit.
B) provide their services in exchange for remuneration.
C) begin their employment contract with an organisation.
D) None of the above. Employees are never classified as primary users.

Question

Quizplus · Accepted Answer

Primary users are considered a resource provider to the extent they provide an organisation with resources in the form of credit or services, and they make decisions based on providing such resources. A potential employee may use general purpose financial reports to help them decide whether to apply for a position within the organisation. Once employed, they provide their services (resources) in exchange for remuneration.

Employees Are Considered a Primary User of General Purpose Financial