The objective of financial reporting is to
A)provide information to the Canada Revenue Agency.
B)provide financial information that is useful to existing and potential investors and creditors.
C)comply with Accounting Standards for Private Enterprises.
D)comply with International Financial Reporting Standards.

Question

Quizplus · Accepted Answer

The primary objective of financial reporting is to provide financial information that is useful to existing and potential investors, creditors, and others in making decisions about providing resources to the entity. This includes decisions about buying, selling, or holding equity and debt instruments, and providing or settling loans or other forms of credit.

The Objective of Financial Reporting Is to