Which one of the following is the main objective of financial reporting according to the conceptual framework?
A) to provide information that will increase the value of the company
B) to provide information in assessing future cash flows
C) to provide information about the company's capital providers
D) to provide financial information that is useful to existing and potential investors and creditors in making decisions about a business

Question

Quizplus · Accepted Answer

The main objective of financial reporting, according to the conceptual framework, is to provide financial information that is useful to existing and potential investors, creditors, and other users in making decisions about providing resources to the entity. This encompasses assessing the prospects for future cash flows to the company and making decisions about buying, selling, or holding equity and debt instruments, among other financial decisions.

Which One of the Following Is the Main Objective of Financial