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:

Line Structure

The simplest form of organizational structure that direct lines of authority flow from top management to individual employees, establishing a clear hierarchy.