What Decision Would Users of Financial Information Not Need to Make

question 3

Multiple Choice

What decision would users of financial information not need to make under the IFRS Framework?

• A)Decide whether to invest in an entity.
• B)Information on an entity's economic performance.
• C)Amount of money to borrow from an entity.
• D)Assessment of the riskiness of cash flows.

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Definitions:

Operating Segments

Components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity's chief operating decision maker.

Financial Reporting

The process of disclosing financial results and related information to stakeholders and the public, typically through formal documents.

Reportable Segments

Portions of a business that have distinct financial information available and are regularly reviewed by the company's management for decision-making purposes.

GAAP

Generally Accepted Accounting Principles, which are a set of rules encompassing the details, complexities, and legalities of business and corporate accounting.