Financial reporting objectives do not include providing information:
A)About resources, obligations, and changes.
B)To determine market values, assess profit potential, and evaluate management.
C)To assess the amounts and timing of prospective cash receipts.
D)To make rational investment, credit, and similar decisions.

Question

Quizplus · Accepted Answer

Financial reporting objectives include providing information about resources, obligations, changes, assessing the amounts and timing of prospective cash receipts, and helping users make rational investment, credit, and similar decisions. Therefore, option B is incorrect because it suggests an objective of determining market values, assessing profit potential, and evaluating management is not included in financial reporting objectives.

Financial Reporting Objectives Do Not Include Providing Information