Over time,a number of objectives have been attributed to information provided within financial statements.Which of the following is not an objective of financial statements?
A) To enable outsiders to assess the stewardship of management.
B) To provide information to users that is useful for making and evaluating decisions about the allocation of scarce resources.
C) To enable reporting entities to demonstrate accountability between the entity and those parties to which the entity is deemed to be accountable.
D) To help managers to maximise their own wealth and the wealth of the organisation.

Question

Quizplus · Accepted Answer

The objective of financial statements is to provide information that is useful for decision making by external users, such as investors, creditors, and other interested parties. The objective is not to help managers maximise their own wealth and the wealth of the organization, but rather to provide information that enables users to assess the financial position, performance, and cash flows of the reporting entity.

Over Time,a Number of Objectives Have Been Attributed to Information