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)
Famous quotes containing the words basic and/or objectives:
“What, then, is the basic difference between todays computer and an intelligent being? It is that the computer can be made to see but not to perceive. What matters here is not that the computer is without consciousness but that thus far it is incapable of the spontaneous grasp of patterna capacity essential to perception and intelligence.”
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