The primary objective of external financial reporting is to provide useful economic information about a business to help external parties,primarily investors and creditors,make sound financial decisions.

Question

Quizplus · Accepted Answer

This statement accurately describes the primary objective of external financial reporting. The information presented in external financial reports should be relevant and reliable so that investors and creditors can make informed decisions about providing funding or investing in a company.

The Primary Objective of External Financial Reporting Is to Provide