Question

A broad term that describes all information provided to external users, including but not limited to financial statements.

Answer 1

Financial reporting is the term that covers all information provided to external users, including financial statements and other official documents and communications from credible sources.

Step-by-step explanation:

The broad term that describes all information provided to external users, which includes financial statements as well as other forms of communication, is financial reporting. Financial reporting encompasses a variety of documents and communications such as information from official sources like government and international agencies, reports from respected media outlets, and detailed analyses supported by credentialed experts. As companies grow, the availability of financial information becomes crucial for shareholders and bondholders, who may not have a personal relationship with the company's managers but are willing to invest based on the disclosed financial health and projections of the firm.

The comprehensive term that encapsulates all information provided to external users, including financial statements and other forms of communication, is financial reporting. Financial reporting extends beyond company-issued financial statements to include diverse documents and communications, such as information from official sources like government and international agencies, reports from reputable media outlets, and detailed analyses by credentialed experts. As companies expand, the accessibility of financial information becomes paramount for stakeholders, including shareholders and bondholders. These external parties, who may lack personal relationships with the company's managers, rely on disclosed financial data to make informed investment decisions. Financial reporting serves as a crucial mechanism for fostering transparency, allowing external users to assess a company's financial health, performance, and future projections, thereby influencing investment and strategic decisions.

Answer 2

The broad term that describes all information provided to external users, including but not limited to financial statements, is financial information. It includes details about a company's products, revenues, costs, and profits, and is crucial for making investment decisions and assessing a company's financial health.

Step-by-step explanation:

The broad term that describes all information provided to external users, including but not limited to financial statements, is financial information. This includes information about a company's products, revenues, costs, and profits, which can be accessed by external stakeholders such as investors, analysts, and regulators.

Financial information is crucial for making investment decisions, assessing the financial health of a company, and understanding its performance and prospects. It helps stakeholders evaluate a company's profitability, liquidity, solvency, and overall financial position.

Examples of financial information include annual reports, balance sheets, income statements, cash flow statements, and financial ratios. These documents provide a comprehensive view of a company's financial performance, allowing external users to make informed decisions based on reliable and accurate information.