Which of the Following Statements Is Not an Objective of Financial

question 9

Multiple Choice

Which of the following statements is not an objective of financial reporting?

• A)Provide information that is useful in investment and credit decisions.
• B)Provide information about enterprise resources, claims to those resources, and changes to them.
• C)Provide information on the liquidation value of an enterprise.
• D)Provide information that is useful in assessing cash flow prospects.

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Definitions:

Assigned Receivables Financing

A financing method where a company uses its accounts receivable as collateral to receive a loan or advance.

Accounts Receivable Factoring

A financial deal in which a company trades its outstanding invoices to an external entity at a reduced price to get cash instantly.

Wholesale Nursery

A business specializing in growing plants in bulk for sale primarily to retailers, landscapers, and other businesses, rather than directly to the public.

Retail Outlets

Stores or shops that directly sell goods or merchandise to consumers.