CMA USA | P1 | A1.01 | Objectives of Financial Reporting | Theory

Objective of Financial Reporting

Did you know the main goal of financial reporting is to provide useful financial insights to investors, creditors, and stakeholders for better decision-making? By focusing on assets, liabilities, equity, income, and expenses, financial reports help users evaluate:

The amount, timing, and uncertainty of future cash flows
The economic resources of a company and related claims
The impact of transactions on a firm’s financial position

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