What is the primary objective of financial reporting as indicated in the conceptual framework?
A) Provide information that is useful to those making investing and credit decisions.
B) Provide information that is useful to management.
C) Provide information about those investing in the entity.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

The primary objective of financial reporting, as stated in the conceptual framework, is to provide information that is useful to those making investing and credit decisions. While providing information to management and investors is important, the main focus is on providing information that can aid in decision-making related to investing and extending credit. Therefore, choice A is the correct answer.

What Is the Primary Objective of Financial Reporting as Indicated