The objective to financial reporting is to provide capital providers useful information for decision making.

Question

Quizplus · Accepted Answer

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

The Objective to Financial Reporting Is to Provide Capital Providers