The Primary Objective If Financial Reporting Is to Provide Information

The primary objective if financial reporting is to provide information that is useful to external decision makers. The following is a list of types of information that are helpful in assessing expected future cash flows and statements describing those types of information..
a. Liquidity
b. Operating capability
c. Risk
d. Return on investment
e. Financial Flexibility
______ 1. The uncertainty of the future profitability of a company
______ 2. The ability of a company to use its financial resources to adapt to change.
______ 3. The ability of a company to efficiently produce goods and services for customers.
______ 4. Refers to how quickly a company can convert assets into cash.
______ 5. A measure of overall company performance for equity shareholders.
______ 6. Comes from a company's ability to raise new capital.
______ 7. Caused by factors such as technological, political, and economic change.
______ 8. Indicated by the productive capacity of long-lived assets.
______ 9. Negatively related to risk.
Required:
Match each type of information with the appropriate statement by placing the appropriate letter in the space provided.

Correct Answer:

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1. c
2. e
...

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