Worldatwork Exam T7 Topic 1 Question 62 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 62
Topic #: 1

[All T7 Questions]

Which of the following most accurately describes the overall objective of financial reporting?

AProvide information that is useful for decision making

BEnable International Accounting Standards Board (IASB) to issue more useful and consistent pronouncements

CEnhance and organization's financial consistency over time as Board members change

DTo classify an organization's stakeholders as either internal or external information users

Show Suggested Answer

Suggested Answer: A

by Jose at Dec 08, 2022, 09:12 PM

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Verona

3 months ago

I'm just hoping the real exam questions are more straightforward than this. Maybe they'll ask about the true purpose of financial reporting: giving accountants something to argue about.

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Salome

2 months ago

C) Enhance an organization's financial consistency over time as Board members change

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Tiffiny

2 months ago

I know, these options can be confusing. But it's important to understand the main objective of financial reporting.

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Dawne

2 months ago

C) Enhance an organization's financial consistency over time as Board members change

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Vashti

2 months ago

B) Enable International Accounting Standards Board (IASB) to issue more useful and consistent pronouncements

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King

2 months ago

I hope so too, this question seems a bit confusing.

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Freeman

2 months ago

B) Enable International Accounting Standards Board (IASB) to issue more useful and consistent pronouncements

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Martina

2 months ago

A) Provide information that is useful for decision making

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Zoila

3 months ago

A) Provide information that is useful for decision making

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Salina

3 months ago

Haha, Option D sounds like something a bureaucrat would come up with. Next they'll say the goal is to create more forms in triplicate.

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Oneida

4 months ago

This is a no-brainer. How could anyone think the objective is to classify stakeholders? That's just basic organization, not the purpose of reporting.

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Rodney

2 months ago

This is a no-brainer. How could anyone think the objective is to classify stakeholders? That's just basic organization, not the purpose of reporting.

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Glendora

2 months ago

C) Enhance and organization's financial consistency over time as Board members change

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Brent

2 months ago

B) Enable International Accounting Standards Board (IASB) to issue more useful and consistent pronouncements

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Rolande

2 months ago

A) Provide information that is useful for decision making

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Marshall

2 months ago

That's true, having consistent standards is important for financial reporting.

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Hobert

2 months ago

B) Enable International Accounting Standards Board (IASB) to issue more useful and consistent pronouncements

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Justine

2 months ago

I agree, the main goal is to provide information for decision making.

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Brittni

3 months ago

A) Provide information that is useful for decision making

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Stephaine

4 months ago

I agree with Alica. Financial reporting should be geared towards serving the information needs of users, not just the IASB or internal consistency.

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Sean

4 months ago

I think option A is correct because stakeholders need accurate information to make informed decisions.

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Alica

4 months ago

Option A is the most accurate. The main objective of financial reporting is to provide useful information for decision-making by various stakeholders.

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