The objectives of financial reporting include which of the following? ·a. Financial reporting should provide information that is comprehensibie to all potential investors. Financial reporting should provide information directly to potential investors about the nature, timing, and uncertainty of prospective cash dividends. b. c. Financial reporting should provide information that is useful to potential investors in making rational investment decisions. d. Financial reporting should provide information about an enterprise's economic resources bưt not about circumstances that change those resources.
The objectives of financial reporting include which of the following? ·a. Financial reporting should provide information that is comprehensibie to all potential investors. Financial reporting should provide information directly to potential investors about the nature, timing, and uncertainty of prospective cash dividends. b. c. Financial reporting should provide information that is useful to potential investors in making rational investment decisions. d. Financial reporting should provide information about an enterprise's economic resources bưt not about circumstances that change those resources.
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 7C
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Question
Transcribed Image Text:The objectives of financial reporting include which
of the following?
a. Financial reporting should provide information
·a.
that is comprehensibie to all potential
investors.
b. Financial reporting should provide information
directly to potential investors about the
nature, timing, and uncertainty of
prospective cash dividends.
c. Financial reporting should provide information
that is useful to potential investors in making
rational investment decisions.
d. Financial reporting shouid provide information
about an enterprise's economic resources
bưt not about circumstances that change
those resources.
Expert Solution
Step 1
Financial reporting is reporting of complete useful informations of a company that include financial statements, balance sheet ,profit loss ,cash flow statement to the users.
Financial reporting provide information about the overall position of the company, and its profitability and stability.
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