The Primary Objective of Financial Accounting and Reporting Is to Provide

question 87

Multiple Choice

The primary objective of financial accounting and reporting is to provide:

• A)useful information.
• B)going concern information.
• C)ratio analysis.
• D)solvency.

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Definitions:

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements.

Measurable

Capable of being quantified or precisely assessed.

Social Responsibility Pyramid

A framework suggesting that businesses are responsible to their stakeholders in a hierarchical manner, starting from economic, legal, ethical, to philanthropic responsibilities.

Milton Friedman

was an American economist known for his strong belief in free-market capitalism and for being a leading proponent of monetarism.