One objective of financial reporting is to provide

Question

Quizplus · Accepted Answer

One of the primary objectives of financial reporting is to provide information that is useful in assessing the cash flow prospects of the enterprise. This includes information about the sources and uses of cash, as well as the timing and uncertainty of cash flows. While information about investors and the liquidation values of resources may be included in financial reporting, they are not the primary objectives. Information that is intended to attract new investors is not typically a stated objective of financial reporting.

One Objective of Financial Reporting Is to Provide