Which of the Following Is Not a Benefit Associated with the FASB

question 68

Multiple Choice

Which of the following is not a benefit associated with the FASB Conceptual Framework Project?

• A)A conceptual framework should increase financial statement users' understanding of and confidence in financial reporting.
• B)Practical problems should be more quickly solvable by reference to an existing conceptual framework.
• C)A coherent set of accounting standards and rules should result.
• D)Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply.

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Definitions:

Comparative Advantage

The ability of an individual or entity to produce goods or services at a lower opportunity cost than other producers.

Climate

The long-term pattern of weather conditions in a particular area, including temperature, precipitation, humidity, and seasonal variations.

Technology

The use of scientific understanding to achieve practical goals, particularly within the industrial sector.

World Price

The global market price of a product or service, determined by worldwide demand and supply.