The Conceptual Framework for Financial Accounting and Reporting Consists of Which

question 141

Multiple Choice

The conceptual framework for financial accounting and reporting consists of which three main components?

• A)Goals,Concepts,and Exceptions.
• B)Objective,Codes,and Guidelines.
• C)Objective,Elements,and Concepts.
• D)Concepts,Principles,and Practices.

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Definitions:

Deadweight Loss

The reduction in total surplus that results from a market distortion, such as a tax or subsidy, signaling inefficiencies in allocation of resources.

Socially Optimal Level

A state at which the allocation of resources maximizes social welfare, often where marginal social benefit equals marginal social cost.

Marginal Revenue

Marginal revenue is the additional income received from selling one more unit of a product or service.

Marginal Cost

Marginal cost is the increase or decrease in the total cost of producing one additional unit of a good or service.