The Objective of Financial Reporting Is to

question 39

Multiple Choice

The objective of financial reporting is to

• A) provide information to the Canada Revenue Agency.
• B) provide financial information that is useful to existing and potential investors, lenders and other creditors.
• C) comply with Accounting Standards for Private Enterprises.
• D) comply with International Financial Reporting Standards.

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Definitions:

Accrued Interest

Accrued Interest is the interest that has accumulated on a loan or bond since the last interest payment was made but has not yet been paid out.

Straight-Line Method

An accounting method of depreciation where a fixed amount is charged annually over the useful life of the asset.