Knowledge of the objectives or mission of a business will be most useful in assisting users of financial reports in understanding:
A)the liquidity position of the business.
B)why it is taking longer than it should to collect money from accounts receivable.
C)the financial reporting cycle.
D)what the business is trying to achieve.

Question

Quizplus · Accepted Answer

Knowledge of the objectives or mission of a business will help users of financial reports understand what the business is trying to achieve, which can give context to the financial information presented in the reports. Understanding the business's goals and purpose can help users make more informed decisions based on the financial information presented. The other choices (A, B, and C) do not necessarily relate directly to the business's objectives or mission.

Knowledge of the Objectives or Mission of a Business Will