Financial statement are prepared to provide adequate, _______ and periodical information about economic resources and obligations of a business firm.

Reliable

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Non material

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Material

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Non-reliable

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Solution

The correct option is D Reliable
Financial statements are the basic source of information to the shareholders and other external parties for understanding the profitability and financial position of any concern. One of the objective of financial statement is providing information about economic resources and obligation of a business. They provide adequate, reliable and periodic information about economic resources and obligations of a business firm to investors and other external parties who have limited authority, or ability to obtain information.

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Similar questions

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B. To provide information about the earning capacity of the business.
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