Basic Objectives
Financial reporting should provide information that is:
- useful to present to potential investors and creditors and other users in making rational investment, credit, and other financial decisions.
- helpful to present to potential investors and creditors and other users in assessing the amounts, timing, and uncertainty of prospective cash receipts.
- about economic resources, the claims to those resources, and the changes in them.
- helpful for making financial decisions
- helpful in making long-term decisions
- helpful in improving the performance of the business
- useful in maintaining records
Read more about this topic: Generally Accepted Accounting Principles (United States)
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