Which of the following statements is not an objective of financial reporting?
A)Provide information that is useful to users in making resource allocation decisions.
B)Provide information about an entity's economic resources, obligations, and equity/net assets.
C)Provide information on the liquidation value of an enterprise.
D)Provide information about changes in an entity's economic resources, obligations, and equity/net assets.

Question

Quizplus · Accepted Answer

Financial reporting aims to provide information to users, which helps them in making various decisions related to an organization. The objective of financial reporting includes providing information related to an entity's economic resources, obligations, and equity/net assets. It also aims to provide information about changes in such resources, obligations, and equity/net assets. However, providing information on the liquidation value of an enterprise is not an objective of financial reporting.

Which of the Following Statements Is Not an Objective of Financial