Purpose of accounting is to provide financial information to _________.

Shareholders

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Tax authorities

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Investors

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All of these

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Solution

The correct option is D All of these
There are various stakeholders who are interested in the financial position of the company. Shareholders and investors are the people who have provided the capital in the organization, hence want to know the financial position of the organization and more interested to know about the utilization of their money.
Tax Authorities are more interested to know about the overall financial position of the business to check and ensure that the company is paying the tax obligations on timely basis.

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