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NEW QUESTION: 1
An objective of financial reporting is
A. Providing information on compliance with established procedures.
B. Evaluating management results compared with standards.
C. Providing information useful to investors, creditors, donors, and other users for decision making.
D. Assessing the adequacy of internal control.
Answer: C
Explanation:
The objectives of financial reporting are concerned with the underlying goals and purposes of accounting. They are to provide information that1) is useful to those making investment and credit decisions, assuming that those individuals have a reasonable understanding of business and economic activities:2) is helpful to current and potential investors and creditors and other users in assessing the amount timing, and uncertainty of future cash flows; and3) discloses economic resources claims to those resources, and the changes therein.

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