The primary objective of financial reporting is to provide information:
A) regarding the cash flows of the business
B) to the federal government about tax matters
C) about the profitability of the business
D) useful for making investment and lending decisions

Question

Quizplus · Accepted Answer

The primary objective of financial reporting is to provide useful information for making investment and lending decisions. While financial reporting may include information about cash flows and profitability, these are not the primary objectives. And while financial reporting may be used by the federal government for tax matters, this is not the primary objective.

The Primary Objective of Financial Reporting Is to Provide Information