Register now or log in to join your professional community.
A. Direct measurement of the value of a business enterprise.
B. Provision of information that is useful to present and potential investors, creditors, and others in making rational financial decisions regarding the enterprise.
C. Establishment of rules for accruing liabilities.
D. Direct measurement of the enterprise’s stock price.
In my opinion it must be B.
Answer is B. The major purpose of of external finacial reporting to issue an independent report about company which help others to take their financial decision.
The Correct Answer is Option No B....
Provision of information that is useful to present and potential investors, creditors, and others in making rational financial decisions regarding the enterprise.
Option B:
According to IAS-1 Presentation of Financial Statements, primary objective of external financial reporting is to provide useful information to the intended users of financial statement for their future decisions about the co.
Prime objective of this task is well described in option (b).
Provision of Information useful to stakeholders outside the organization in making rational financial decision regarding the enterprise
answer B is the correct answer
thanks
