The objective of financial reporting is to provide information that is mainly useful to
A) governmental taxing bodies.
B) employees and labour unions.
C) investors and creditors.
D) internal and external auditors.

Question

Quizplus · Accepted Answer

The primary objective of financial reporting is to provide information that is useful to investors and creditors in making decisions regarding providing resources to the entity. This includes assessing the entity's ability to generate cash flows and the security and timing of generating those cash flows.

The Objective of Financial Reporting Is to Provide Information That