Financial reporting objectives do not include providing information:
A)Useful to investors and creditors in making decisions.
B)To determine market values,assess profit potential,and evaluate management.
C)Helpful to investors in predicting cash flows.
D)That tells about a company's economic resources and claims to those resources.

Question

Quizplus · Accepted Answer

Financial reporting objectives include providing information useful to investors and creditors in making decisions, helpful to investors in predicting cash flows, and that tells about a company's economic resources and claims to those resources. Objective B, which suggests determining market values, assessing profit potential, and evaluating management, is not a primary objective of financial reporting. It is more of a secondary objective, which can be derived from the primary objectives.

Financial Reporting Objectives Do Not Include Providing Information