Which of the Following Best Describes Why a Firm Produces

question 85

Multiple Choice

Which of the following best describes why a firm produces financial statements?

• A) to use as a tool when planning future investments within a firm
• B) to increase the intrinsic value of a firm
• C) to provide a means for interested outside parties such as creditors to obtain information about a firm, with an overview of the short- and long-term financial condition of a business
• D) to show the daily activities a firm has undertaken in the previous financial year, and what activities are planned for the near future

---

Definitions:

Biceps Brachii

A muscle of the upper arm that acts to flex the elbow and rotate the forearm.

Brachialis

A muscle located in the upper arm that is primarily responsible for flexing the elbow.

Teres Major

A muscle of the upper limb that assists in the rotation and adduction of the arm.

Teres Minor

A small muscle of the rotator cuff that assists in rotating the arm laterally and stabilizing the shoulder joint.