Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Which of the following is NOT a specific objective of financial statements?

Options:

To provide information about economic resources and obligations of a business

Information about activities of business affecting the society

Disclosing accounting policies

None of the above

Correct Answer:

None of the above

Explanation:

The specific objectives of financial statements include the following:
*To provide information about economic resources and obligations of a business.
*To provide information about the earning capacity of the business
*To provide information about cash flow
*To judge effectiveness of management
*Information about activities of business affecting the society
*Disclosing accounting policies