Question

Financial statements can be used by which of the following​ groups? A. Regulatory bodies. B. Investors and creditors. C. Individuals. D. All of the above.

Answer 1

Answer:

D. All of the above.

Explanation:

D. All of the above.

Because

A. the regulatory body keeps a check and maintains a balance in setting the standards for the proper functioning of the organization . If it does not use the financial statements how would it know about the proper working or the rules followed or the errors / flaws/ mishandling of the companies. So it uses financial statements.

B. Investors and Creditors

Investors and Creditors usually invest or get services rendered so their prefer using the financial statement for better understanding and their obligations, limitations and consultations.

C. Individuals such as accountants , employees, etc may also use financial statements for their better understanding and daily tasks or performances and follow the same set of standards . . For example if the company uses matching principle the new accountant hired must also use matching principle.