Which of the follow statements regarding the primary objective of financial reporting is correct?
A) The primary objective of financial reporting is to provide information useful for the acquisition of long-term assets.
B) Information that is faithfully represented is complete, neutral, and free from error.
C) Relevant information ensures that users of the information will make the correct decisions.
D) To be useful, information must follow the Generally Accepted Accounting Principles which are created and governed by the Securities and Exchange Commission.

Question

Quizplus · Accepted Answer

The primary objective of financial reporting is to provide information that is useful for making economic decisions. Faithful representation, which includes being complete, neutral, and free from material error, is a fundamental qualitative characteristic of useful financial information, as outlined by accounting frameworks such as the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).

Which of the Follow Statements Regarding the Primary Objective of Financial