The Primary Objective of External Financial Reporting Is

question 99

Multiple Choice

The primary objective of external financial reporting is:

• A)to enhance the ability of the company to acquire financial capital from external sources.
• B)to accurately provide financial results for tax purposes.
• C)to comply with external regulations and requirements of government and professional associations.
• D)to provide useful information to decision makers,especially investors and creditors.

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Definitions:

Taxa

represents the groups or categories in the classification system of organisms, ranging from kingdom down to species.

Inclusive

An approach or policy that ensures all people can participate and are not excluded on the basis of race, gender, disability, or other characteristics.

Eukarya

The domain that includes all eukaryotes: protists, fungi, plants, and animals.

Membrane-Enclosed Organelles

Cellular structures in eukaryotic cells that are surrounded by a lipid bilayer membrane, each with specific functions, such as the nucleus and mitochondria.