What is the primary goal of financial reporting according to accounting principles?

The primary goal of financial reporting according to accounting principles is to provide useful financial information to users. This encompasses delivering relevant and reliable data that assists various stakeholders—such as investors, creditors, management, and regulators—in making informed economic decisions.

Financial reporting is designed to portray the financial performance and position of an entity clearly and transparently. It allows users to evaluate past performance, understand the current financial health, and predict future outcomes. By presenting consistent and comparable information over time, financial reports enhance the decision-making process and foster accountability and trust in reported financial results.

Other choices represent important aspects of financial information, such as serving the needs of stockholders or ensuring compliance with regulations. However, these objectives are subordinate to the overarching goal of providing useful information that benefits a broad range of users in their decision-making processes.