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Accounting

Explain an example of objective of financial reporting.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter2: Financial Reporting: Its Conceptual Framework

Section: Chapter Questions

Problem 28GI

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Explain an example of objective of financial reporting.

Expert Solution

Step 1

Hi since examples cannot be used to explain the objectives of financial reporting. It is assumed that the question need to be provided is objectives of financial reporting.

Financial reporting:

Financial reporting is the procedure used to communicate the information obtained from financial statements prepared for a company. It is essential to disclose the data to various stakeholders of the company, as various decisions need to be taken by the stakeholders.

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