Question

Which of the following obj of financial reporting is applicable to business entities not to governmentL entities. Provide information to

A) assist in public accountability
B) assist in evaluating operating results
C) assist in assessing services provided
D)assist in assessing cash flow prospects

Answer 1

Financial reporting helps evaluate operating results and assess cash flow prospects in business entities.

Step-by-step explanation:

The objective of financial reporting that is applicable to business entities but not to government entities is to assist in evaluating operating results. This objective focuses on providing information about the financial performance of a business, including its revenues, costs, and profits.

For example, a business may prepare and present an income statement which shows the revenues earned and the expenses incurred during a specific period. This helps stakeholders assess how well the business has performed in terms of generating profits or incurring losses.

Assessing cash flow prospects and evaluating the ability of a business to generate cash inflows and meet its cash obligations are also objectives of financial reporting that are applicable to business entities.