Which of the Following Is the Primary Objective of Financial

question 158

Multiple Choice

Which of the following is the primary objective of financial statements?

• A) Providing managers with detailed information tailored to the managers' specific information needs.
• B) Providing users outside the business organization with information about the company's financial position and operating results.
• C) Reporting to the Internal Revenue Service the company's taxable income.
• D) Indicating to investors in a particular company the current market values of their investments.

---

Definitions:

Beginning And End Points

These are the start and finish lines in a process, project, or activity, defining the scope and limits of the undertaking.

Management By Exception

A management strategy where only significant deviations from set standards are addressed, allowing managers to focus on critical issues.

Desired Performance

The expected or targeted level of output or outcome that an organization or individual aims to achieve.

Actual Performance

The real, observed output or results of an individual's or organization's work, as opposed to expected or theoretical outcomes.