Financial statements are designed primarily to:

Question

Quizplus · Accepted Answer

Financial statements are primarily designed to provide information about the company's financial position and operating results to people outside the business organization, such as investors, creditors, analysts, and regulators. While financial statements may also be used by managers to make business decisions, their primary purpose is external reporting. Financial statements do not directly report taxable income to tax authorities, and while they may provide information on the company's market value, this is not their primary purpose.

Financial Statements Are Designed Primarily To