Which Statement Below Best Describes the Objectives of Financial Accounting

question 126

Multiple Choice

Which statement below best describes the objectives of financial accounting?

• A) Provide information that helps predict cash flows.
• B) Provide information about the economic resources, claims to resources and changes in resources and claims.
• C) Provide information that is useful in making decisions.
• D) All of the above are correct.

Assess the profitability of a company through the analysis of income, expenses, and net income.

Prepare basic financial statements, including income statements, balance sheets, and statements of owner's equity.

Identify the types of transactions that influence owner's equity.

Calculate net income or loss based on changes in capital and withdrawals.