The needs of users of government financial reports are the same as those of users of business entity financial reports.

True or Flase?

FALSE

Explanation:

The needs of users of government financial reports are NOT the same as those of users of business entity financial reports.

Users who are interested in government financial reports which has to do with understanding the financial performance of federal, state and local governments; do so, to understand if the purpose of governance is being achieved which is the well-being of the citizens (Economy and Defense).

Contrariwise, users of business entity financial reports, which has to do with understanding the financial performance of business organisations, do so, to understand if the purpose of business establishment is being achieved which is the profit-maximization.