What are the objectives of preparing financial statements?
The basic objectives of preparing financial statements are to present a true and fair view of the financial performance of the business and to present a true and fair view of the financial position of the business.
These statements present periodic reports on the process of business enterprises and the results achieved during a given period. The information provided is useful to the management to plan and control business operations effectively.
Additionally, financial statements are prepared to satisfy the informational needs of various users, including creditors, shareholders, and employees, by providing a general set of reports regarding the business status.
Explanation
The answer is derived directly from the context provided in the first chunk, which explicitly lists objectives (a) and (b), and the summary section which outlines the utility of financial statements for management and stakeholders. For a 3-mark question, listing the two 'true and fair view' points is essential, while mentioning the utility to users completes the answer based on the text provided.