Question

Which of the following, the most important objective for financial reporting is to provide information useful for: Multiple Choice

a) Providing accountability
b) Making decisions.
c) Determining taxable income.
e) Increasing future profits.

Answer 1

The most important objective for financial reporting is to provide information useful for making decisions.

Step-by-step explanation:

The most important objective for financial reporting is to provide information useful for making decisions. Financial reports provide important information about a company's financial performance, position, and cash flows, which help stakeholders make informed decisions about investing in the company, lending it money, or doing business with it. For example, investors use financial reports to evaluate the profitability and financial health of a company before deciding whether to buy or sell its stock.