FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
The most general and most important objective of financial reporting is to: A. Provide useful information for decision making B. Ensure management objectives are met C. Safeguard the company's assets D. Keep information summarized, simplified and condensed Reset Selection
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Transcribed Image Text:The most general and most important objective of financial reporting is to: A. Provide useful information for decision making B. Ensure management objectives are met C. Safeguard the company's assets D. Keep information summarized, simplified and condensed Reset Selection
Expert Solution
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Evaluation of options

Option B is wrong because ensuring that the management objectives are met is not an objective of financial reporting. Financial reporting is more focused towards the needs of external users of the organization.

Option C is wrong because the safeguarding of the company's assets is the duty of management. It is not the objective of financial reporting.

Option D is wrong because keeping the information summarized, simplified and condensed is the duty of the accountant while preparing financial reports. But, it is not the objective of financial reporting.

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