Which of the Following Is Not an Objective of Financial

question 92

Multiple Choice

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

• A) To reflect prospective cash receipts to investors and creditors.
• B) To reflect prospective cash flows to an enterprise.
• C) To reflect resources and claim to resources.
• D) To reflect current stock prices and information concerning stock markets.

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Definitions:

Exclusive Agreement

A contract between two or more parties where one party agrees to buy, sell, or promote only the products or services of the other party.

Reasonable Efforts

A legal standard that requires a party to act with fair, honest, and diligent efforts to fulfill an obligation.

Actual Authority

The specific powers that a principal has expressly given to an agent to make decisions on their behalf.

Agency Relationship

A legal and fiduciary relationship between two parties, where one person (the agent) is authorized to perform acts or make decisions on behalf of another (the principal).