According to accounting standards, how should a company prepare its accounts?

The correct choice emphasizes that a company must prepare its accounts with the intention of presenting them to shareholders. This aligns with accounting standards and principles, which require that financial statements reflect the financial position and performance of the organization in a way that is informative for stakeholders, particularly shareholders who have a vested interest in the company's financial health and operational results.

Shareholders rely on financial statements to make informed decisions regarding their investments, which is why the presentation of accounts must adhere to a standardized format that provides a clear, accurate, and truthful representation of the company's financial activities. This ensures transparency and accountability, which are key principles of financial reporting.

While the other choices might suggest different motivations for preparing accounts, they do not align with the core purpose of financial reporting as stipulated by accounting standards. For instance, preparing accounts solely based on the company's needs or to show only positive activities can lead to biased reporting, which does not uphold the principle of fairness and objectivity mandated by accounting frameworks. Similarly, preparing accounts to avoid disappointing stakeholders undermines the necessity for transparent reporting and may fail to provide an accurate reflection of the company's performance. Thus, the focus on presenting financial results to shareholders encapsulates the essence of adherence to accounting standards.