Which of the Following Is Not an Objective of Financial

question 66

Multiple Choice

Which of the following is not an objective of financial reporting?

• A)To reflect prospective cash receipts to investors and creditors.
• B)To reflect prospective cash flows to an enterprise.
• C)To reflect resources and claims to resources.
• D)To reflect current stock prices and information concerning stock markets.

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Definitions:

Odd Pricing

Psychological pricing strategy in which goods are priced at, say, $9.99 rather than $10.00 in the belief that the price will seem lower than it really is.

Prestige Pricing

A pricing strategy where goods are priced higher than market averages to evoke a sense of luxury or exclusivity.

Reference Pricing

Reference pricing is a pricing strategy wherein the price of a product is determined relative to the price of similar products or a benchmark in the market.

Penetration Pricing

A pricing strategy where the price of a product is set lower than the competitors' to gain market share rapidly.