What is the primary objective of financial reporting?
A)To help investors make credit decisions.
B)To help management assess cash flows.
C)To protect users from fraudulent financial information.
D)To provide useful information for decision making

Question

Quizplus · Accepted Answer

The primary objective of financial reporting is to provide useful information for decision making. This information helps users, such as investors and creditors, to make informed decisions about whether to buy, hold, or sell investments in a company. Financial reporting also helps management assess the financial health of a company and make strategic decisions about its operations. While financial reporting can help protect users from fraudulent financial information, this is not its primary objective.

What Is the Primary Objective of Financial Reporting