Users of Financial Statements Should Consider Which of the Following

question 51

Multiple Choice

Users of financial statements should consider which of the following when evaluating the quality of accounting information?

• A) Economic faithfulness of accounting measurements and classifications.
• B) Reliability of the measurements.
• C) Reasonableness of the estimates made in applying GAAP or IFRS.
• D) All of these should be considered.

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Definitions:

Statistical Section

A part of comprehensive annual financial reports that includes tables and charts showing financial trends, fiscal capacity, and demographic information over multiple years.

FASB

Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the United States.

Traditional Model

A conventional or long-established approach or method used in business, economics, or other fields.

Private Company Council

A body that provides recommendations to the Financial Accounting Standards Board (FASB) regarding the accounting treatment for private companies.