Which of the Following Is an Objective of Financial Reporting

question 36

Multiple Choice

Which of the following is an objective of financial reporting for not-for-profit entities as established by 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:

Free Trade

An economic policy that allows imports and exports between countries without tariffs, quotas, or other restrictions.

Domestic Price

The price of goods or services within a country's borders, exclusive of international factors.

World Price

The price at which goods trade on the international market, reflecting the global balance of supply and demand for those goods.

Import

Goods or services that come into a country from abroad for sale.