Which of the Following Is an Objective of Financial Reporting

question 47

Multiple Choice

Which of the following is an objective of financial reporting by nongovernmental not-for-profit entities as established by the FASB? Financial reporting should provide information that is useful to present and potential resource providers and other users in:

• A)Assessing the types of services provided and the need for those services.
• B)Assessing the services provided and the entity's ability to earn a profit.
• C)Making rational decisions about the allocation of resources to those organizations.
• D)Assessing how managers have managed personnel.

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Definitions:

Discriminatory Act

Any action that unfairly or unjustly differentiates or segregates individuals or groups on the basis of attributes such as race, gender, age, or sexual orientation.

Disparate Treatment

A form of discrimination where individuals are treated differently based on prohibited factors, such as race, age, or gender, in similar situations.

Prima Facie Case

is a case in which the evidence before a trial is sufficient to prove the position unless contradicted by evidence presented during the trial.

Title VII

A part of the 1964 Civil Rights Act that forbids discrimination in employment due to an individual's race, skin color, religious beliefs, gender, or country of origin.