Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which of the following statements about the primary purpose of financial reporting is the most correct? Provides information that can help with decision making. The
- Which of the following statements about the primary purpose of financial reporting is the most correct?
- Provides information that can help with decision making.
- The individual needs of users can be satisfied by tailoring of financial reports.
- Enables accountability since managers would have to account for resources used.
- Identifies a range of existing and potential users dependant on financial statements to make decisions.
- Which of the following would not be an example of a user who may rely on general purpose financial reports?
- Henry who is given $5 000 on his 18th birthday by his grandfather to invest in the share market.
- Singh who manufactures sugar free muesli bars hopes to secure long term sales contracts with school canteens all over the county.
- Milly who runs a successful organic food caf is keen to expand into the food truck industry by obtaining finance via crowd-funding.
- Van who owns a fishing and camping store is keen to expand his product range by approaching his suppliers to ask about increasing his credit limit.
- Which of the following is not a role of The Conceptual Framework (The Framework)?
- It is the foundation that standard-setters use when developing accounting standards.
- It enables the external auditors to evaluate compliance with IFRS and then form an opinion.
- It enables consistency when the existing accounting standards do not provide guidance on a particular issue.
- It is an alternative to the detailed accounting standards as it is much easier to understand by users of financial statements.
- Which of the following is not an objective of The Conceptual Framework?
- Addresses the common needs of users of financial reports.
-
- Enables consistency of qualitative characteristics in financial reports.
- Enables implementation of one universal set of accounting standards.
- Provides guidance for transactions not addressed in existing accounting standards.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started