Financial accounting objectives do not include providing information:
A)Useful to investors and creditors in making decisions.
B)To determine market values,assess profit potential,and evaluate management.
C)Helpful to investors in predicting cash flows.

Question

Quizplus · Accepted Answer

Financial accounting aims to provide information useful for external stakeholders such as investors and creditors to analyze the financial health of a company, assess its profitability potential, and evaluate management. Providing information on market values and predicting cash flows are also important objectives of financial accounting. Therefore, A and C are incorrect as they are both valid objectives of financial accounting.

Financial Accounting Objectives Do Not Include Providing Information