One objective of financial reporting is to provide information that is
A)helpful in assessing the amounts, timing, and uncertainty of future cash flows.
B)useful for competitors who need to assess economic activities.
C)a forecast of future operations.
D)unavailable to management.

Question

Quizplus · Accepted Answer

The objective of financial reporting is to provide information that helps users to make informed decisions by providing information on the amounts, timing, and uncertainty of future cash flows. This information is important for investors, creditors, and other users in making decisions about their investments or potential business relationships. Financial reporting is not meant to be a forecast of future operations, nor is it intended to provide information that is unavailable to management.

One Objective of Financial Reporting Is to Provide Information That