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Goodwill Valuation (Retirement)

Financial sta...

Question

Financial statements provide information to _________ in taking important decision related to the value of investment.

A

owners

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B

managers

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C

shareholders

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D

directors

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Solution

The correct option is B shareholders
Shareholders of companies are interested in knowing the status, safety and return on their investment.
They may also need information to take decision about continuation or discontinuation of their investment in the business. Financial statements provide information to the shareholders in taking such important decisions.

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