Final answer:
The true statement about the objective of general purpose financial reporting is that it provides information related to the entity's economic resources and claims. This information is meant for a broad range of users, including investors and creditors, to assist in making resource provision decisions.
Step-by-step explanation:
The true statement about the objective of general purpose financial reporting is D) the information provided relates to the entity's economic resources and claims. General purpose financial reporting is designed to provide information to users who are not in a position to demand reports tailored to their own information needs. This includes current and potential investors, lenders, and other creditors who use it to make decisions about providing resources to the entity. Thus, the focus is neither solely on industries nor management performance, nor is it exclusively for the use of investment professionals.
The objective of financial reporting is to provide financial information that is useful to present and potential equity investors, lenders, and other creditors in making decisions about providing resources to the organization. The provided content should reflect an accurate and fair view of the company's financial position, which includes its assets (economic resources) and liabilities (claims).