The Primary Objective of Financial Reporting Is to Provide Information

question 29

Multiple Choice

The primary objective of financial reporting is to provide information:

• A)to the federal government.
• B)about the profitability of the business.
• C)regarding the cash flows of the business.
• D)useful for making investment decisions and for assessing management's stewardship.

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Definitions:

Guano

The accumulated excrement of seabirds or bats, used historically as a highly effective fertilizer because of its high nitrogen, phosphate, and potassium content.

Limestone

A sedimentary rock composed mainly of calcium carbonate, often used in construction and as a raw material in cement production.

Aquifer

An underground layer of water-bearing permeable rock, rock fractures, or unconsolidated materials (gravel, sand, or silt) from which groundwater can be extracted using a water well.