Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 1 - Financial Accounting and Accounting Standards - Review and Practice - Questions - Page 22: 4

Answer

The senior most crucial objective of financial reporting is to provide detailed and accurate information concerning the financial performance, position and changes in financial position of an enterprise, information which is crucial to a wide range of users in making economic decisions.

Work Step by Step

Importantly, financial reporting provides financial information about the reporting entity which is useful to present to potential capital providers, lenders, banks among other forms of credit providers.
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