Which of the following financial reporting objectives is a user objective?
A)Income tax deferral
B)Net income maximization
C)Cash flow prediction
D)Income smoothing

Question

Quizplus · Accepted Answer

Cash flow prediction is a user objective as it helps investors, creditors, and other stakeholders to assess the ability of an entity to generate cash flows in the future. The other options (A, B, and D) are all management objectives, which are not necessarily aligned with the needs of external users of financial statements.

Which of the Following Financial Reporting Objectives Is a User