Financial reporting refers to
A)The communication of relevant financial information to decision makers
B)The application of analytical tools to general-purpose financial statements
C)Financial statements only
D)Ratio analysis
E)The application of analytical tools to general-purpose financial statements and ratio analysis

Question

Quizplus · Accepted Answer

Financial reporting involves more than just presenting financial statements; it involves the communication of relevant financial information to decision makers. This information could include management's discussion and analysis of the financial statements, footnotes or disclosures, or any other information that enhances the users' understanding of the financial position and performance of the entity. Options B, C, and D are all components of financial reporting, but they do not capture the breadth of what financial reporting entails. Option E is too specific as it only refers to the application of analytical tools to financial statements.

Financial Reporting Refers to