Which of the Following Is an Objective of Financial Reporting

question 16

Multiple Choice

Which of the following is an objective of financial reporting by business enterprises?

• A)Financial reporting should provide assurance that all liabilities of business enterprises will be paid.
• B)Financial reporting should show the timing and amount of future cash dividends to potential investors.
• C)The primary focus of financial reporting is information about the assets of the entity.
• D)Financial reporting should provide information about the economic resources of an enterprise, the claims to those resources, and changes in those resources and claims to them.

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Definitions:

Inbound Logistics

Inbound Logistics refers to the transport, storage, and delivery of goods coming into a business, an essential component of supply chain management, focusing on receiving and handling materials and supplies.

Competitive Forces Model

A business framework devised by Michael Porter that analyzes competitiveness by recognizing five major forces that could endanger a company’s position.

Value Chain Model

Model that shows the primary activities that sequentially add value to the profit margin; also shows the support activities.

General Strategies

Refers to the broad methods or plans formulated by organizations or individuals to achieve major goals or objectives.