General purpose financial statements are those financial statements released to a broad group of users. They are intended for a wide range of uses, such as credit analysis and stock valuations. ... General purpose financial statements are usually issued to the investment community and lenders.

What are the 4 general purpose financial statements?

There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity. Balance sheets show what a company owns and what it owes at a fixed point in time.

Why are financial statements considered as general purpose reports?

General purpose financial reports provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity.