Question

Which of the following is the objective of financial reporting? To provide information: A. used to identify, measure, analyze and communicate financial information needed by management to plan, control and evaluate a company’s operations. B. that defines the process of how and at what cost money is allocated among competing interests. C. about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors. D. about the management and shareholders of an enterprise.

Answer 1

Answer: The correct answer is "C. about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors.".

Explanation: According to the IASB The purpose of financial information is to provide financial information about an entity to be useful to existing and future investors, lenders and other creditors to facilitate decision making.