Question

What are the objectives of financial statements? They provides ______.

Options

• Information about economic resources and obligations of a business

• Information about the earning capacity of the business

• Information about activities of business affecting the society

• All of the above

Answer 1

All of the above.

Explanation:

Financial statements are prepared to provide adequate, reliable, and timely information about economic resources, as well as useful financial information that can be used to predict, compare, and evaluate the earning capacity of a business firm, and to report the activities of a business organisation that have an impact on society.