Which of the following statements best describes the purpose of financial reporting (Explain why you chose your answer and why you rejected the others)

(a) Provide a listing of an entity’s resources and obligations

(b) Provide an estimate of future cash flows on the basis of past cash flows

(c) Provide an estimate of the market value of the entity

(d) Provide a fair description of how wealth was created in the past as a basis for estimating future wealth creation AppendixLO1