Accounting information users need reports about the economic activities and condition of businesses.

Question

Quizplus · Accepted Answer

Accounting information users, such as investors, creditors, and managers, rely on financial reports to make informed decisions about the financial health and performance of a business. These reports provide information about the company's financial position, its revenues and expenses, and its cash flows, among other things. Therefore, it is true that accounting information users need reports about the economic activities and condition of businesses.

Accounting Information Users Need Reports About the Economic Activities and Condition