Which of the Following Best Describes Why a Conceptual Framework

question 2

Multiple Choice

Which of the following best describes why a conceptual framework is necessary?

• A) to build all standards and rules upon a common foundation and increase financial statement users' understanding and confidence
• B) to make financial statement preparation an automated process requiring no human intervention
• C) to completely eliminate the potential for companies to exercise professional judgement in preparation of financial information
• D) to decrease the comparability of different companies' financial statements

---

Definitions:

Certain Date

A specific, determined point in time, often mentioned in contracts and agreements.

Percentage Increase

A measure expressed as a percentage that represents the magnitude of an increase in a value or quantity compared to its original value.

Sales Data

Comprehensive information regarding the sales of products or services within a specific period.