Which of the Following Groups Is Not an Intended Audience

question 38

Multiple Choice

Which of the following groups is not an intended audience for general purpose financial reporting?

• A)Lenders
• B)Investors
• C)Customers
• D)Other creditors

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Definitions:

Debt-To-Equity Ratio

An indicator of how a firm's assets are funded, reflecting the ratio of equity and debt in financing.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholders' equity.

Net Profit Margin

A financial metric that measures the percentage of profit generated from revenue after all expenses have been subtracted.

Gross Margin

The difference between revenue and cost of goods sold, which shows the profitability of a company's core activities.