What Is Financial Reporting

question 57

Multiple Choice

What is Financial Reporting?

• A) The process of communicating internal accounting information to existing and potential investors, creditors, lenders, and other external decision makers.
• B) The process of communicating financial accounting information to existing and potential investors, creditors, lenders, and other external decision makers.
• C) The process of preparing financial accounting information to existing and potential investors, managers, and employees.
• D) The process of communicating the strategic plan to existing and potential investors, creditors, lenders, and other external decision makers.

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Definitions:

Lbs

An abbreviation for pounds, a unit of weight commonly used in the United States and the British imperial system; not directly a financial term unless related to commodities trading.

Coffee Futures

Financial contracts obligating the buyer to purchase coffee, and the seller to sell coffee, at a predetermined future date and price.

Pounds

A unit of mass commonly used in the British imperial and United States customary systems, equivalent to 0.453592 kilograms.

Marking to Market

The practice of updating the value of a financial instrument to reflect its current market value.