The primary objective of financial accounting information is to provide useful information to:
A) Management.
B) Capital providers.
C) Regulators.
D) Academicians.

Question

Quizplus · Accepted Answer

The primary objective of financial accounting information is to provide useful information to capital providers, which includes investors, creditors, and other stakeholders who provide funds to the company. The information helps them in making investment and credit decisions, as well as evaluating the performance, risk, and financial position of the company. While financial accounting information may also be useful to management, regulators, and academicians, their needs are secondary to those of capital providers.

The Primary Objective of Financial Accounting Information Is to Provide