Financial statements are prepared mainly for______________.

Internal users of financial information

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External users of financial information

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Creditors of the business

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Managers of the business

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Solution

The correct option is B External users of financial information
Prospective Investors need Financial Statements to assess the viability of investing in a company. Investors may predict future dividends based on the profits disclosed in the Financial Statements.

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Creditors and governments are _____ users of financial statement.

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