Prospective financial statements may be prepared for
A) Only general use.
B) Only limited use.
C) Only internal use.
D) General, limited and internal use.

Question

Quizplus · Accepted Answer

Prospective financial statements can be prepared for general use, limited use, and internal use depending on the intended purpose and audience. General-use financial statements are intended for external stakeholders such as investors and creditors, limited-use financial statements are intended for a specific set of users with a defined purpose, and internal-use financial statements are for internal management purposes. Therefore, prospective financial statements can be prepared for all three categories of users.

Prospective Financial Statements May Be Prepared for