Of the Following, the Most Important Objective for Financial Reporting

question 27

Multiple Choice

Of the following, the most important objective for financial reporting is to provide information useful for:

• A) Making decisions.
• B) Determining taxable income.
• C) Providing accountability.
• D) Increasing future profits.

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Definitions:

Memorandum

A memorandum is a written message used in business or diplomacy to communicate formal information, policies, or instructions.

Oral Contract

An agreement between parties spoken and agreed to aloud rather than written, yet is legally binding.

Consideration

The benefit, interest, right, or profit involved in an agreement or contract, on which it is based.

Statute of Frauds

A legal concept requiring certain types of agreements to be executed in writing and signed by the parties involved to be enforceable.