Which of the following is incorrect regarding the objective of general purpose financial reporting?Group of answer choicesDecisions about providing resources to the entity depend on the users' expected returns, which in turn, depend on assessments of the entity's prospects for future net cash inflows and management stewardshipThe objective of general purpose financial reporting is to provide information that is useful to primary users in making decisions about providing resources to the entity.The objective of general purpose financial reporting forms the foundation of the Conceptual FrameworkGeneral purpose financial reporting provides information about an entity's economic resources, claims and changes in those resources and claims, but not on the utilization of those resources by the entity's management.

12.According to the Statement of Accounting Concepts 2, the objective of general-purpose financial reporting is to provide information to users that is useful for making and evaluating decisions about:单选题  Aprofitable investmentsBlending strategiesCimproving asset liquidityDthe allocation of scarce resources

According to the Conceptual Framework, the objective of general purpose financial reporting is to provide information that is useful to existing and potential investors, lenders and other creditors in making decision about:Question 1Answera.providing resources to the entity.b.profitable investments.c.improving asset liquidity.d.lending strategies.

The objective of financial reporting according to the Conceptual Framework is: “to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions relating to providing resources to the entity” Analyse this sentence carefully and explain what it all means.

Some governments have begun to provide highly condensed financial information, budget summaries, and narrative descriptions, in addition to their traditional CAFR. This type of report is generally referred to as a (an)a.General purpose financial reportb.Popular report.c.Operating budget.d.MD&A.

‘General purpose financial statements only really need to include two reports – the income statement and the balance sheet – since these two reports capture all of the elements of accounting.’ Comment on this statement.