Although accounting information is used by a wide variety of external parties,financial reporting is primarily directed toward the informational needs of:
A)Investors and creditors.
B)Government agencies such as the Internal Revenue Service.
C)Customers.
D)Trade associations and labor unions.

Question

Quizplus · Accepted Answer

Financial reporting is primarily directed toward the informational needs of investors and creditors who are interested in evaluating a company's financial position and making investment and lending decisions based on the reported information. While government agencies such as the Internal Revenue Service may also use accounting information, they are not the primary audience for financial reporting. Customers, trade associations, and labor unions may also have an interest in a company's financial information, but they are not the primary users.

Although Accounting Information Is Used by a Wide Variety of External