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

Limited Time Offer

25%

Off

Get Premium T7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Oneida

1 days 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.

upvoted 0 times

...

Stephaine

4 days ago

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

upvoted 0 times

...

Sean

9 days ago

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

upvoted 0 times

...

Alica

15 days ago

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

upvoted 0 times

...

Laticia

18 days ago

I agree with Roxanne, financial reporting should provide information for decision making.

upvoted 0 times

...

Roxanne

19 days ago

A) Provide information that is useful for decision making.

upvoted 0 times

...