أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
the correct option is "D" which is the needs of the users of the information.
Financial Accounting Standards Board has set the objective for financial reporting should be according to the needs of the users of the information.
The objectives of of financial reporting for business enterprises are based on (d.) the needs of the users of the information.
According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on The needs of the users of the information
TheFASBhasbeengiventwocharges.First,itistodevelopaconceptualframeworkofaccountingtheory.Second,itistoestablishstandards(generallyacceptedaccountingprinciples)forfinancialaccountingpractice.Theintentistodevelopatheoreticalfoundationofinterrelatedobjectivesandconceptsthatleadstotheestablishmentofconsistentfinancialaccountingandreportingstandards.Inotherwords,theconceptual
R A frameworkshouldprovidealogicalstructureanddirectiontofinancialaccountingand
reporting.Thisconceptualframeworkisexpectedto:
1. guidetheFASBinestablishingaccountingstandards
2. provideaframeofreferenceforresolvingaccountingquestionsinsituationswhereastandarddoesnotexist
3. determinetheboundsforjudgmentinthepreparationoffinancialstatements
4. increaseusers’understandingofandconfidenceinfinancialreporting
5. enhancecomparability
TheFASBexpectsthattheconceptualframeworkwillencouragecompaniestoprovidefinancial(andrelated)informationthatisusefulinefficientlyallocatingscarceeconomicresources in capital and other markets.1
Exhibit2-1showstherelationshipamongtheobjectives,concepts,andstandards,
theirpurposes,andthedocumentsissuedbytheFASB.TheoutputsoftheconceptualframeworkareStatementsofFinancialAccountingConcepts;todate,eighthavebeenissued.Theoutputsofthestandard-settingprocessareincludedintheFASBAccountingStandardsCodificationdiscussedinChapter1.ThestandardscontainedintheCodificationidentifythepreferableaccountingpracticefromthevariousalternativesthatariseinresponsetothechanging,dynamicbusinessenvironment.Asmuchaspossible,theFASBconsidersitsconceptualframeworkinestablishingthesestandards.
Becauseofthelargetask,theFASBdivideditsconceptual frameworkactivitiesintoseveral projects. Exhibit2-2shows these projects. Thefirstprojectdealtwithidentifying
1. This discussion is based on a background paper,“The Conceptual FrameworkProject,” FinancialAccountingStandards Board (Stamford, Conn., 1980).
theobjectivesoffinancialreporting.ThisprojectresultedinFASBStatementofFinancialAccountingConceptsNo.1,“ObjectivesofFinancialReportingbyBusinessEnterprises.”Thisdocumentestablishedthefocusoftheremainingprojects,whicharedividedintotwogroups(accountingandreporting).TheQualitativeCharacteristicsProjectlinked
EXHIBIT2-2 ConceptualFrameworkProjectsforFinancialAccountingandReporting
Objectives Project
Accounting Reporting
Projects Projects
QualitativeCharacteristicsProject
Elements FinancialStatements
andFinancialReporting
Recognition Income
Measurement CashFlow
andLiquidity
AdaptedfromFigure1in“TheConceptualFrameworkProject,”FinancialAccountingStandardsBoard(Stamford,Conn.,1980).
Answer (D) is the correct answer: The objectives of financial reporting for business enterprises are based on the needs of the users (internal and outsiders) of the informatioin.
D. One of the objectives of financial reporting identified by SFAC No. 1 is to provide information that is useful to users in their decision making.
Response A is incorrect because GAAP is derived from the objectives.
Response B is incorrect because financial statements report on the business entity, not the management. Management's stewardship may only be indirectly inferred from the financial statements.
Response C is incorrect because conservatism is a fundamental concept of SFAC No. 1.
I completely agree with the answers to colleagues
Correct answer is
d. The needs of the users of the information.
One of the objectives of financial reporting identified by SFAC No. 1 is to provide information that is useful to users in their decision making.
d)the needs of the users of the information
option d. .................................
هل تحتاج لمساعدة في كتابة سيرة ذاتية تحتوي على الكلمات الدلالية التي يبحث عنها أصحاب العمل؟