Which of the following statements is/are true? 1 The shareholder needs a statement of financial prospects, ie an indication of future progress. However, the supplier of goods on credit needs a statement of financial position, ie an indication of the current state of affairs. 2 The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. A 1 only B 2 only C Both 1 and 2 D Neither 1 or 2

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter2: Financial Reporting: Its Conceptual Framework
Section: Chapter Questions
Problem 2MC: Which of the following is considered a constraint on useful information by Statement of Financial...
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Which of the following statements is/are true?

1 The shareholder needs a statement of financial prospects, ie an indication of future progress.

However, the supplier of goods on credit needs a statement of financial position, ie an indication

of the current state of affairs.

2 The objective of financial statements is to provide information about the financial position,

performance and changes in financial position of an entity that is useful to a wide range of users

in making economic decisions.

A 1 only

B 2 only

C Both 1 and 2

D Neither 1 or 2

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