SAC2 defines the objective of general purpose financial reporting as:
A) to provide information to users that is useful for making and evaluating decisions about the allocation of scarce resources
B) to decide whether the reporting entity is achieving its objectives
C) to give a true and fair view of the financial position and performance of the entity
D) all of the above

Question

Quizplus · Accepted Answer

SAC2 states that the objective of general purpose financial reporting is to provide information to users that is useful for making and evaluating decisions about the allocation of scarce resources. While choices B and C are important in financial reporting, they are not the main objective as defined by SAC2.

SAC2 Defines the Objective of General Purpose Financial Reporting As