to a wide range of users in making economic decisions b. To prepare and present a balance sheet, an income statement, a cash flow statement, and a statement of changes in equity only. c. To prepare only financial statements in accordance with all applicable standards and interpretations. d. To prepare and present comparable, relevant, reliable and understandable information to investors and creditors only.
to a wide range of users in making economic decisions b. To prepare and present a balance sheet, an income statement, a cash flow statement, and a statement of changes in equity only. c. To prepare only financial statements in accordance with all applicable standards and interpretations. d. To prepare and present comparable, relevant, reliable and understandable information to investors and creditors only.
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
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 7MC
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Question
Q37
What is the objective of financial statements according to the framework?
a.
To provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions
b.
To prepare and present a balance sheet, an income statement, a cash flow statement, and a statement of changes in equity only.
c.
To prepare only financial statements in accordance with all applicable standards and interpretations.
d.
To prepare and present comparable, relevant, reliable and understandable information to investors and creditors only.
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