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:

Regulated

Controlled or governed by rules, statutes, or laws set forth by a government or regulatory authority to ensure fairness, safety, or compliance.

Bill of Rights

The initial ten amendments to the U.S. Constitution, providing crucial liberties and protections for citizens of the United States.

Open Debate

A discussion or argumentation that is unrestricted and accessible to all interested parties, allowing for the free exchange of ideas.

Fourteenth Amendment

An amendment to the U.S. Constitution granting citizenship to all persons born or naturalized in the United States and guaranteeing all citizens equal protection of the laws.