Discuss the Objectives of Accounting as Outlined by the Trueblood

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The Answer is Like its predecessors, the Trueblood Committee had difficulty agreeing on the Answer:s to the questions proposed by the AICPA. As a result, it indicated that its final report be regarded as a first step in the process. The report listed the following objectives for financial reporting:
1. The basic objective of financial statements is to provide information useful for making economic decisions.
2. An objective of financial statements is to serve primarily those users who have limited authority, ability, or resources to obtain information and who rely on financial statements as their principal source of information about an enterprise's economic activities.
3. An objective of financial statements is to provide information useful to investors and creditors for predicting, comparing, and evaluating potential cash flows in terms of amount, timing, and related uncertainty.
4. An objective of financial statements is to provide users with information for predicting, comparing, and evaluating enterprise earning power.
5. An objective of financial statements is to supply information useful in judging management's ability to use enterprise resources effectively in achieving its primary enterprise goal.
6. An objective of financial statements is to provide factual and interpretative information about transactions and other events that is useful for predicting, comparing, and evaluating enterprise earning power. Basic underlying assumptions with respect to matters subject to interpretation, evaluation, prediction, or estimation should be disclosed.
7. An objective is to provide a statement of financial position useful for predicting, comparing, and evaluating enterprise earning power.
8. An objective is to provide a statement of periodic earnings useful for predicting, comparing, and evaluating enterprise earning power.
9. Another objective is to provide a statement of financial activities useful for predicting, comparing, and evaluating enterprise earning power. This statement should report mainly on factual aspects of enterprise transactions having or expecting to have significant cash consequences. This statement should report data that require minimal judgment and interpretation by the preparer.
10. An objective of financial statements is to provide information useful for the predicting process. Financial forecasts should be provided when they will enhance the reliability of the users' predictions.
11. An objective of financial statements for governmental and not-for-profit organizations is to provide information useful for evaluating the effectiveness of the management of resources in achieving the organization's goals. Performance measures should be quantified in terms of identified goals.
12. An objective of financial statements is to report on the enterprise's activities affecting society that can be determined and described or measured and that are important to the role of the enterprise in its social environment. This objective was an attempt to draw attention to those enterprise activities that require sacrifices from members of society who do not benefit from those activities.

Discuss the Objectives of Accounting as Outlined by the Trueblood

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Discuss the Objectives of Accounting as Outlined by the Trueblood

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Correct Answer:
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