Asked by Rachel Sawyer on Jun 07, 2024
Verified
The costs of providing financial information is ultimately borne by
A) management.
B) shareholders.
C) auditors.
D) professional analysts.
Financial Information
Data related to the financial status or performance of an individual or entity, including balance sheets, income statements, and cash flow statements.
Borne
Borne usually refers to costs or expenses being carried or supported. In business, it means that a party takes on the responsibility for certain expenses.
- Discern the utilization of financial reports by outside parties such as creditors, investors, and analysts.
Verified Answer
SS
Sarah StewartJun 09, 2024
Final Answer :
B
Explanation :
Shareholders ultimately bear the costs of providing financial information as they are the ones who invest their money and rely on the accuracy of the information to make informed decisions. While management is responsible for generating financial statements and auditors are responsible for ensuring their accuracy, the costs associated with these activities are ultimately passed on to shareholders through fees, reduced profitability, or lower returns. Professional analysts may also incur costs in analyzing financial information, but these costs are typically borne by the firms they work for or their clients, rather than directly by shareholders.
Learning Objectives
- Discern the utilization of financial reports by outside parties such as creditors, investors, and analysts.
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