The objective of financial reporting, according to the FASB's Conceptual framework, can best be described as
A) Providing decision-useful information to the investors and creditors
B) Setting up rules that will cause business to act in a socially responsible manner
C) Providing decision-useful information to governments
D) Providing detailed information for managerial decisions

Question

Quizplus · Accepted Answer

The FASB's Conceptual Framework states that the objective of financial reporting is to provide decision-useful information to the investors and creditors. This information includes financial performance, liquidity, and solvency of the company. The objective is to help investors and creditors make informed decisions about investing or lending their resources to the company.

The Objective of Financial Reporting, According to the FASB's Conceptual