a. State the decision usefulness approach to accounting theory

b. What two questions arise once the decision usefulness approach is adopted?

c. What primary constituency of financial statement users has been adopted by a major accounting standard setting body as a guide to the reporting of decision-useful financial information?

d. According to the FASB Conceptual Framework's second objective of financial reporting, what information is needed by the constituency of users that you have identified in part c?

e. Explain why information about the riskiness of securities is useful to investors.