The primary objective of financial reporting is to provide information:
A)to the federal government.
B)about the profitability of the business.
C)regarding the cash flows of the business.
D)useful for making investment decisions and for assessing management's stewardship.

Question

Quizplus · Accepted Answer

The primary objective of financial reporting is to provide information that is useful for making investment decisions and for assessing management's stewardship over the resources of the business. This includes information about the financial position, performance, and changes in financial position of an entity that is useful to a wide range of users in making economic decisions.

The Primary Objective of Financial Reporting Is to Provide Information