Which of the following are not purposes of financial statements?
To help management make decisions
To calculate taxable income
To allow users to make economic decisions
To determine the amount which is legally distributable to equity shareholders

Question

Quizplus · Accepted Answer

Financial statements are primarily designed for external users to make economic decisions (not for management decision-making), and while they are used to report financial performance and position, determining taxable income and the amount legally distributable to equity shareholders are functions of tax laws and corporate laws, respectively, rather than primary purposes of financial statements themselves.

Which of the Following Are Not Purposes of Financial Statements