One of the Challenges in Developing a Common Conceptual Framework

question 9

True/False

One of the challenges in developing a common conceptual framework will be to agree on how the framework should be organized since the FASB and IASB conceptual frameworks are organized in very different ways.

---

Definitions:

Journal Entry

A journal entry is a record in accounting that logs a transaction in the financial statements of a business.

Allowance Method

An accounting technique used to account for bad debts by estimating uncollectible accounts at the end of each period.

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's accounts receivable that may not be collected.

Write-off

The process of recognizing that a portion of a company's inventory or accounts receivable is no longer valuable and removing it from the financial statements.