The primary objective of financial reporting focuses on
A)consistency.
B)representational faithfulness.
C)validity.
D)decision usefulness in making investment,credit and resource allocation decisions.
E)the matching concept.

Question

Quizplus · Accepted Answer

The primary objective of financial reporting is to provide decision-useful information for making investment, credit, and resource allocation decisions. This means that the financial statements should be reliable, relevant, timely, and understandable to users. The other options are important concepts in financial reporting, but they are not the primary objective. For example, consistency and representational faithfulness are important for comparability and accuracy, but they are not the ultimate goal of financial reporting. Validity refers to the accuracy of the measurement, but it is not sufficient by itself to guarantee usefulness. The matching concept is a principle of accounting, but it is not the main objective of financial reporting.

The Primary Objective of Financial Reporting Focuses on