The role of financial reporting is needed to provide information to investors and others with 3 out of the following objectives. Which is the odd one out?
A) make investment and related decisions applicable to the firm
B) help determine cash flows in the firm
C) identify economic resources and obligations available to the firm
D) establish employee remuneration packages

Question

Quizplus · Accepted Answer

The other objectives listed (A, B, C) are all related to providing information about the financial position and performance of the firm to stakeholders such as investors, creditors, and regulators. Objective D, establishing employee remuneration packages, is not typically a primary objective of financial reporting. While financial information may be used to inform decisions related to employee compensation, it is not the primary purpose of financial reporting.

The Role of Financial Reporting Is Needed to Provide Information