The Objectives of Financial Reporting Include All of the Following

question 37

Multiple Choice

The objectives of financial reporting include all of the following except to provide information that

• A)is useful to the Internal Revenue Service in allocating the tax burden to the business community.
• B)is useful to those making investment and credit decisions.
• C)is helpful in assessing future cash flows.
• D)identifies the economic resources (assets), the claims to those resources (liabilities), and the changes in those resources and claims.

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Definitions:

Acidic

Having the properties of an acid, which include a sour taste, the ability to turn litmus paper red, and the capability to donate a hydrogen ion (H+) in reactions.

pKa

A quantitative measure that indicates the strength of an acid in solution, specifically the acid's dissociation constant.

pKb

A measure of the basicity of a compound, defined as the negative logarithm of the base dissociation constant (Kb).

Acid/Base Reaction

A chemical reaction that occurs between an acid and a base, often resulting in the formation of a salt and water.