The Primary Objective of External Financial Reporting Is

question 70

Multiple Choice

The primary objective of external financial reporting is:

• A)to enhance the ability of the company to acquire financial capital from external sources.
• B)to accurately provide financial results for tax purposes.
• C)to comply with external regulations and requirements of government and professional associations.
• D)to provide useful information for decision-making,especially investors and creditors.

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Definitions:

Reasonably Fit

A measure of whether a product meets the ordinary purposes it is intended for, based on what a reasonable person would expect.

Ordinary Purposes

The normal and expected use of a product or service as intended by the manufacturer.

Merchantable Food

Food products that meet the minimum quality standards set by law, making them fit for sale or consumption.

Fit to Eat

Safe and suitable for consumption as food without posing any health risk.