What is the main objective of financial reporting?
A)To provide cash projections for future accounting periods.
B)To provide information to users for decision making.
C)To compare actual with budgeted results.
D)To ensure an owner has the information necessary to decide what distribution to take.

Question

Quizplus · Accepted Answer

The main objective of financial reporting is to provide information to users for decision making. Financial reports provide relevant, reliable, and timely information to investors, creditors, and other stakeholders to help them make informed decisions. While cash projections, budget comparisons, and owner distributions may all be part of financial reporting, they are not the main objective.

What Is the Main Objective of Financial Reporting