Which of the Following Is an Objective of Financial Reporting

question 16

Multiple Choice

Which of the following is an objective of financial reporting by business enterprises?

• A)Financial reporting should provide assurance that all liabilities of business enterprises will be paid.
• B)Financial reporting should show the timing and amount of future cash dividends to potential investors.
• C)The primary focus of financial reporting is information about the assets of the entity.
• D)Financial reporting should provide information about the economic resources of an enterprise, the claims to those resources, and changes in those resources and claims to them.

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Definitions:

Social Approval

The positive endorsement or acceptance by a social group or society.

Social Disapproval

The negative evaluation of an individual or group by others, often leading to exclusion or rejection.

Self-Categorisation

The cognitive process in which individuals classify themselves as members of certain social groups or categories, influencing their behavior and self-perception.

Group Norm

An unwritten rule or standard of behavior shared by members of a group that guides conduct and expectations within the group.