The primary objective of financial reporting is to provide information

Asked by admin @ 09/10/2021 in Business viewed by 270 People

The primary objective of financial reporting is to provide information:___________.

a. About a firm’s management teamb. Useful to capital providersc. Concerning the changes in financial position resulting from he income-producing efforts of the entityd. About a firm’s financial and investing activities

Answered by admin @ 09/10/2021

Answer:

b. Useful to capital providers.

Explanation:

Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.

The objective of financial reporting include all of the following to provide information that:

1. Is useful to those making investment decisions. This information would help creditors to determine whether they should lend to a client or not; or assist investors in deciding whether they should invest in a business or not.

2. Is useful to those lending out money to business entities. When investors and creditors are well furnished with financial information about an organization, they would be able to assess the amounts of cash, timing, and uncertainty of cash flows from dividends or interest.

3. Is useful to creditors in making decisions about providing resources to business entities.

Hence, the primary objective of financial reporting is to provide information useful to capital providers.

Additionally, financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining financial accounting and reporting standards for general guidance of individuals or capital providers such as investors, issuers and auditors.

Which of the following describes an executive information system (eis)? a. uses the internet only for data analysis b. analyzes internal and external data sources c. reveals results broken down into time periods d. provides business performance reports

Asked by maham237 @ 13/01/2021 in Computers And Technology viewed by 487 persons

Able, baker, and charles are engaged in the marketing to and enrollment of beneficiaries into medicare health plans. mr. able is an independent agent paid directly by a health plan. ms. baker is an independent agent paid through a field marketing organization (fmo). mr. charles is an independent agent paid for his work by a third-party marketing organization (tmo). how do the cms compensation rules apply to these three agents?

Asked by maham237 @ 13/01/2021 in Business viewed by 2744 persons

The primary objective of financial reporting is to provide information

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