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Debora [2.8K]
3 years ago
6

The objective of general-purpose financial reporting is to provide financial information about a reporting entity to each of the

following except:______________
A. potential equity investors.
B. potential lenders.
C. present investors.
D. All of these answers are correct.
Business
1 answer:
Anna007 [38]3 years ago
5 0

Answer:

D) All of these answers are correct.

Explanation:

A company's financial reports are not top secret, their taxes are based on them. They main purpose of preparing financial reports is to provide useful information for current and potential investors, and current and potential lenders.

Any company that needs to raise equity must show their financial reports to current and potential investors so that they can decide whether to invest or not in the company. Publicly traded corporations must present their financial records to the market. Every single bank (or any other type of lender including  investors willing to buy bonds) will request a copy of the financial statements to analyze if the company is going to be able to pay them back.

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