The Primary Objective of Financial Reporting Is to Provide Information

question 16

Multiple Choice

The primary objective of financial reporting is to provide information useful for making investment and lending decisions.To be useful,information must possess certain characteristics.Which of the following is NOT one of the basic characteristics that financial information must possess to be useful?

• A) Reliability
• B) Creativity
• C) Relevance
• D) Comparability

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Definitions:

Units of X

A measurement term used to specify an amount of a particular item, substance, or product.

Income

The money received, especially on a regular basis, for work or through investments.

Original Bundle

In economics, the combination of goods and services initially chosen or available to a consumer before considering price changes or budget constraints.

Price Rise

An increase in the cost or price of goods and services, often indicative of inflation or shifts in supply and demand dynamics.