The stewardship objective of financial reporting means that:
A) the objective of general purpose financial reports is to provide information to users that is useful for making decisions about allocation of scarce resources.
B) managers use general purpose financial reports to show the shareholders that they are managing resources effectively.
C) the objective of general purpose financial reports is to provide information that is useful to capital providers.
D) general purpose financial reports support stewardship function in entities where there is no separation of ownership from control.

Question

Quizplus · Accepted Answer

The stewardship or accountability objective of financial reporting suggest that where there is separation of ownership and control then general purpose financial reports can be used by managers to show owners they are managing resources of the entity effectively.

The Stewardship Objective of Financial Reporting Means That