Knowledge of the objectives or mission of a business will be most useful in assisting users of financial reports in understanding:
A) why it is taking longer than it should to collect money from debtors.
B) what the business is trying to achieve.
C) the liquidity position of the business.
D) the financial reporting cycle.

Question

Quizplus · Accepted Answer

Understanding the objectives or mission of a business will help users of financial reports to comprehend what the business is attempting to achieve, such as its goals, strategies, and priorities. This knowledge will aid in interpreting the financial reports and assessing the company's performance in achieving its objectives. Choices A, C, and D are not directly related to the understanding of the business's objectives or mission.

Knowledge of the Objectives or Mission of a Business Will