An Implicit Assumption of the International Accounting Standards Board's (IASB's)

question 28

Multiple Choice

An implicit assumption of the International Accounting Standards Board's (IASB's) Conceptual Framework is that

• A) Information must be decision-useful to all potential users of financial reporting.
• B) General-purpose financial reporting is the primary source of information for users of financial reporting.
• C) Users need reasonable knowledge of business and financial accounting matters to understand the information contained in financial statements.
• D) All of the choices are correct.

---

Definitions:

Debits

Entries in accounting that represent an increase in assets or expenses, or a decrease in liabilities, equity, or income.

Credits

Accounting entries that increase liabilities or equity or decrease assets or expenses.

Journal Entries

The recording of financial transactions into a company's accounting records, documenting the details of financial transactions that affect the financial statements.

Debit Accounts

Accounts that are increased with a debit entry, indicating either an increase in assets or expenses or a decrease in liabilities, equity, or revenue.