Which of the following types of information is NOT provided by the accounting process in the preparation of financial statements?

• A. The cash flows of the company during a period
• B. The results of operations over a period of time
• C. Personal opinions of management about future market trends
• D. The financial position of the company at a specific date

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the purpose of financial statements. Financial statements are prepared to provide objective, quantifiable information about a company's financial performance, position, and cash flows. They are not intended to include subjective opinions or predictions.
2. Step 2: Review the types of information typically included in financial statements. These include: (a) Cash flows during a period (e.g., Statement of Cash Flows), (b) Results of operations over a period (e.g., Income Statement), and (c) Financial position at a specific date (e.g., Balance Sheet).
3. Step 3: Identify the type of information that is NOT provided by financial statements. Financial statements do not include personal opinions of management about future market trends, as this information is subjective and speculative rather than objective and quantifiable.
4. Step 4: Compare the options provided in the question to the types of information typically included in financial statements. Eliminate the options that align with the standard components of financial statements.
5. Step 5: Conclude that the correct answer is 'Personal opinions of management about future market trends,' as this type of information is not part of the accounting process in preparing financial statements.