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.

---

Definitions:

Formal Groups

Groups in an organization created officially by the management to perform specific tasks or achieve certain objectives.

Social Groups

Social groups consist of two or more people who interact with one another, share similar characteristics, and collectively have a sense of unity and common identity.

Interest Groups

Organizations formed by individuals or businesses to influence public policy, legislation, and government decisions in their favor, typically through lobbying, advocacy, and education.

Friendship Groups

Informal social networks of individuals who share personal bonds and choose to interact based on common interests or affiliations.