Which of the Following Is Not a Purpose of the Conceptual

question 63

Multiple Choice

Which of the following is not a purpose of the conceptual framework of accounting?

• A) To provide definitions of key terms and fundamental concepts
• B) To provide specific guidelines for resolving situations not covered by existing accounting standards
• C) To assist accountants and others in selecting among alternative accounting and reporting methods
• D) To assist the FASB in the standard-setting process

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Definitions:

Principal Accounting Record

The primary document or ledger that records a company's financial transactions and balances, often referred to as the General Ledger.

Job Cost Sheet

A financial record used in cost accounting to track the expenses associated with a specific job or project, aiding in budgeting and profitability analysis.

Stores Ledger Cards

Detailed records used in inventory management to track the quantity and cost of items held in storage.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a specific period, including labor, material, and overhead costs.