Which of the Following Statements Is Not True with Regard

question 34

Multiple Choice

Which of the following statements is not true with regard to the benefits derived from the FASB's conceptual framework of accounting?

• A)It serves as a guide in establishing standards for the FASB.
• B)The Statements of Financial Accounting Concepts is the primary source of GAAP for accountants.
• C)It establishes the objectives of financial reporting.
• D)It enhances comparability between different companies' financial statements.

---

Definitions:

Withdrawals

Amounts taken from a business by its owner(s) for personal use.

Expenses

Costs incurred by a business in the process of earning revenue.

Consuming Services

Consuming services refers to the use of services provided by businesses or individuals which are utilized and exhausted during the process, such as electricity, consulting, or maintenance services.

Generating Revenues

The process of bringing in income from business activities, sales, or services offered.