Answer the questions below based on your reading of Concepts Statement No. 8.

1) What is the objective of general purpose financial reporting?

2) Who are identified by FASB as the primary users of general purpose financial reporting? Are managers and regulators primary users? Why or why not?

3) What are the fundamental qualitative characteristics of accounting? What is the pervasive constraint?

4) Is conservatism identified as a qualitative characteristic (either fundamental or enhancing)? Why or why not?

5) Why doesnt the board specify a quantitative materiality threshold for recognition?

6) Is conservatism identified as a qualitative characteristic (either fundamental or enhancing)? Why or why not? Which type of primary users would benefit more from conservative financial reporting?

7) Why doesnt the board specify a quantitative materiality threshold for recognition?