Which of the following statements is INCORRECT in relation to the preparation of financial statements?
A) General Purpose Financial Statements must be prepared in accordance with accounting standards.
B) General Purpose Financial Statements are reports intended to meet the information needs common to users who are unable to command the preparation of reports tailored so as to specifically meet all their information needs.
C) The sole objective of a General Purpose Financial Statement is to serve an economic decision making objective.
D) The objective of a General Purpose Financial Statement is to provide information useful to users for making and evaluating decisions about the allocation of scarce resources.

Question

Quizplus · Accepted Answer

While providing information to serve an economic decision making objective is an important objective of financial statements, it is not the sole objective. Other objectives include providing information about the entity's financial position, performance, cash flows, and changes in equity, as well as complying with legal and regulatory requirements.

Which of the Following Statements Is INCORRECT in Relation to the Preparation