Question

Which of the following is a reason why a company provides prior years' financial information along with the current year's information?

a) To meet regulatory requirements
b) To confuse investors
c) To hide financial performance
d) To reduce transparency

Answer 1

Companies provide prior years' financial information along with the current year's information to meet regulatory requirements and ensure transparency and accountability.

Step-by-step explanation:

A reason why a company provides prior years' financial information along with the current year's information is to meet regulatory requirements. Governments often require companies to disclose their financial information to ensure transparency and accountability. By providing prior years' financial information, companies can give a comprehensive view of their financial performance over time.