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:

Soliciting

The act of seeking or requesting information, feedback, or support from individuals or groups.

Stakeholders

Individuals or groups that have an interest in an organization's activities, decisions, and success, including employees, customers, suppliers, and shareholders.

Organizational Cynicism

A negative attitude towards one's employer or organization characterized by distrust, disillusionment, and skepticism regarding its actions or intentions.

Executive Compensation

The pay package provided to top-level management, including salary, bonuses, stock options, and other financial benefits, often reflective of the executive's role and performance.