When managing costs and profits for a growing venture, the difference between the financial statements used by the entrepreneur and those prepared for shareholders, bankers, and other investors is__________.
A) the amount of detail given for revenues and expenses between the different product lines
B) the degree of optimism shown
C) the accuracy of the numbers
D) the time period covered
E) None of the answers apply.

Question

Quizplus · Accepted Answer

Entrepreneurs often require detailed financial statements to manage costs and profits effectively, which include detailed breakdowns of revenues and expenses by product lines. In contrast, financial statements for external parties like shareholders and bankers may not require such detailed segmentation.

When Managing Costs and Profits for a Growing Venture, the Difference