ACCA Applied Knowledge · Business and Technology · Financial information provided by business
Which of the following best describes the main purpose of financial information produced by a business?
The main purpose of financial information is to give users reliable data to make decisions and to assess how the business has performed. It supports planning, control and accountability. It is not designed to minimise tax or to replace non-financial reporting.
- ATo provide data that helps users make decisions and assess performanceCorrect
- BTo ensure the business pays the lowest possible tax
- CTo replace the need for any non-financial reporting
Explanation
Financial information exists to support decision-making, planning, control and accountability. Minimising tax is not its purpose, and it does not replace non-financial reporting, which may complement it.
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