The FASB and IASB concluded that the most general objective of financial reporting is to
A) provide information useful in the decisions made by external users
B) meet the needs of internal users
C) provide information about an entity's earnings
D) provide information about an entity's cash flows

Question

Quizplus · Accepted Answer

The primary objective of financial reporting, as concluded by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), is to provide information that is useful to external users in making decisions. This encompasses a wide range of financial information beyond just earnings or cash flows, aiming to meet the needs of investors, creditors, and other stakeholders who are not involved in the day-to-day operations of the entity.

The FASB and IASB Concluded That the Most General Objective