Question

The primary objective of financial reporting is to provide information:

a. About a firm's management team.
b. That is useful in decision making.
c. About a firm's financing and investing activities.
d. About a firm's product lines.

Answer 1

Answer:

The correct answer is letter "B": That is useful in decision making.

Explanation:

Financial reporting is the activity every business organization engages to analyze the current situation of the company's operations to take decisions. The Financial Statements are the core instruments firms review to find out how is the firm performing and what points could be improved to maximize the revenue.