The Main Objective of the Financial Statements Is

question 139

Multiple Choice

The main objective of the financial statements is

• A) to show the profit of a company.
• B) to allow customers to determine whether a company will honour its product warranties.
• C) to provide useful information to investors and creditors to make decisions about a business.
• D) to determine how many employees the company can afford to hire each year.

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Definitions:

Quantity Sold

The total number of units of a product or service sold over a specific period of time.

Substitutes for Salt

Alternative ingredients or products used to replicate the taste or preservative qualities of salt in cooking and food preparation.

Consumer's Budget

The financial constraint or limit on the amount of goods and services a consumer is able to purchase, based on their income and the prices of goods and services.

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unaffected by changes in price.