The financial statements of a company are the primary sources of information that enable us to communicate the financial results ________.
A)of the company externally
B)of the company internally
C)to internal managers but not externally to the public
D)of the company,both internally and externally

Question

Quizplus · Accepted Answer

The financial statements of a company provide information about the financial results of the company to both internal users (such as managers) and external users (such as investors, creditors, and regulators). Therefore, option D, "of the company, both internally and externally," is the best choice. Options A and C are incorrect because they are either incomplete (A) or incorrect (C). Option B is partially correct as financial statements are used internally, but they are primarily used for external communication.

The Financial Statements of a Company Are the Primary Sources