Asked by Blade McKee on May 10, 2024

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Financial reports are used by

A) management
B) creditors
C) investors
D) All of these choices

Financial Reports

Documents that provide an overview of the financial condition and operations of a company, including balance sheets, income statements, and more.

Creditors

Individuals or institutions that lend money or extend credit to others, with the expectation of being repaid, often with interest.

Investors

Individuals or entities that commit capital to businesses with the expectation of financial returns.

  • Differentiate between the needs of internal and external stakeholders regarding accounting information.
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RC
Roshan ChadhaMay 16, 2024
Final Answer :
D
Explanation :
Financial reports provide important information to all of these groups. Management uses them to monitor the financial performance of the organization and make decisions. Creditors use them to evaluate the creditworthiness of the organization and its ability to repay loans. Investors use them to make informed decisions about whether to invest in the organization.