Detailed Answer
"Answer (B) is correct.
According to the FASB’s Conceptual Framework, the objectives of
external financial reporting are to provide information that (1) is useful to
present and potential investors, creditors, and others in making rational
financial decisions regarding the enterprise; (2) helps those parties in
assessing the amounts, timing, and uncertainty of prospective cash
receipts from dividends or interest and the proceeds from sale,
redemption, or maturity of securities or loans; and (3) concerns the
economic resources of an enterprise, the claims thereto, and the effects of
transactions, events, and circumstances that change its resources and
claims thereto."
