Which financial reporting objective is common to both users and preparers of financial statements?
A)Cash flow prediction
B)Contract compliance
C)Income tax deferral
D)Net income maximization

Question

Quizplus · Accepted Answer

Both users and preparers of financial statements share the objective of ensuring contract compliance, as financial statements are often used to evaluate whether a company is meeting its contractual obligations. Cash flow prediction may be more important to users than preparers, and net income maximization may be a goal for preparers but not necessarily for users. Income tax deferral is not a common objective for users, who are more concerned with understanding a company's financial performance and position.

Which Financial Reporting Objective Is Common to Both Users and Preparers