The objective of financial reporting is to provide financial information about a company that is useful to existing and potential investors, lenders, and other creditors in making decisions about providing resources to the company.

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Financial reporting serves to communicate a company's financial performance and position to various stakeholders. The aim is to provide relevant and reliable information that can assist them in making informed decisions about the company. This includes investors, creditors, lenders, analysts, regulatory bodies, and the general public. The primary objective of financial reporting is to provide users with useful information that can guide their financial decisions related to the company.

The Objective of Financial Reporting Is to Provide Financial Information