Which of the Follow Statements Regarding the Primary Objective of Financial

question 63

Multiple Choice

Which of the follow statements regarding the primary objective of financial reporting is correct?

• A) The primary objective of financial reporting is to provide information useful for the acquisition of long-term assets.
• B) Information that is faithfully represented is complete, neutral, and free from error.
• C) Relevant information ensures that users of the information will make the correct decisions.
• D) To be useful, information must follow the Generally Accepted Accounting Principles which are created and governed by the Securities and Exchange Commission.

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Definitions:

Nobel Laureate

An individual who has been awarded the Nobel Prize, recognizing outstanding contributions to humanity in fields such as literature, peace, economics, medicine, and science.

Cross-Association

A connection or correlation between two or more variables or entities from different contexts or domains.

Capital Markets

Financial markets where long-term debt or equity-backed securities are bought and sold.

Initial Public Offerings

The first sale of a company's shares to the public, marking a private company's transition to a public company.