SAC2 Defines the Objective of General Purpose Financial Reporting As

question 9

Multiple Choice

SAC2 defines the objective of general purpose financial reporting as:

• A) to provide information to users that is useful for making and evaluating decisions about the allocation of scarce resources
• B) to decide whether the reporting entity is achieving its objectives
• C) to give a true and fair view of the financial position and performance of the entity
• D) all of the above

---

Definitions:

Held Primarily

Indicates that the main reason for holding an asset or investment is for a specific purpose, not necessarily for immediate sale.

Amortized Book Value

The adjusted book value of an asset after accounting for amortization expenses.

Bond Investment

The act of investing in bonds, which are debt securities issued by entities to raise capital, offering fixed income over time.

Unrealized Gains

Increases in the value of an asset that has not been sold, and therefore, the gains are not yet realized as income.