The objective of financial reporting is:
A) To provide the market value of a firm at a point in time.
B) To provide the total market value of its common stock.
C) To provide information useful for decision making by investors and creditors.
D) To require all companies to comply with GAAP.

Question

Quizplus · Accepted Answer

The objective of financial reporting is not to determine the market value of a firm or its common stock, nor is it solely to ensure compliance with GAAP. The primary objective is to provide information that is relevant and useful for decision making by investors and creditors.

The Objective of Financial Reporting Is