BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Generally accepted accounting principles
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Reporting on management’s stewardship
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The need for conservatism
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The needs of the users of the information
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Detailed explanation-1: -The objective of financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders, and other creditors in making decisions about providing resources to the entity.
Detailed explanation-2: -The conceptual framework provides a basis for considering the merits of alternative accounting methods and for developing financial accounting and reporting standards.
Detailed explanation-3: -The Conceptual Framework (or “Concepts Statements”) is a body of interrelated objectives and fundamentals. The objectives identify the goals and purposes of financial reporting and the fundamentals are the underlying concepts that help achieve those objectives.
Detailed explanation-4: -Financial reporting aims to track, analyse and report your business income. This helps you and any investors make informed decisions about how to manage the business. These reports examine resource usage and cash flow to assess the financial health of the business.