X Incorrect. External financial reporting provides information for external users of the financial statements to aid decision making. Those users include investors, creditors, and their advisors, not regulatory and taxing authorities. There are separate reporting guidelines for regulatory reporting.

General$-$purpose external financial reporting of a corporation focuses primarily on the needs of which of the following users?

The board of directors of the corporation

Regulatory and taxing authorities

Investors and creditors and their advisors

Management of the corporation