What are the major objectives of financial reporting

What are the major objectives of financial reporting - What...

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What are the major objectives of financial reporting? Who uses financial reporting? What type of information will each user group need? Why? From the reading it states that, the objectives of financial reporting are to provide information that is useful in investment and credit decisions, useful in assessing cash flow prospects, and about company resources, claims to those resources, and changes in them. People like investors would be interested in these financial reports. They would like to see the health of a company, past and present, to determine if they are fit to handle their money. Also the owners of the company would like to see where and how money is spent and received. Another would be creditors, for when the company would like to open a loan. Information like the balance sheet for assets and liabilities and statement of cash flow would be good for the creditors and investors, where the owner might like to see the income statement and the statement of retained earnings and stockholder’s equity. What is the purpose of generally accepted accounting principles (GAAP) and the accounting
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This note was uploaded on 03/01/2012 for the course ACC all taught by Professor All during the Spring '12 term at University of Phoenix.

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What are the major objectives of financial reporting - What...

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