What Is the Objective of General-Purpose Financial Reporting

question 87

Multiple Choice

What is the objective of general-purpose financial reporting?

• A) to provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions in their capacity as capital providers.
• B) to provide companies with the option to select information that favors one set of interested parties over another.
• C) to provide users with financial information that implies total freedom from error.
• D) to provide a metric for financial information used to determine when the boundary between two or more entities should be disregarded and the entities considered to be a licensing arrangement.