What Is the Definition of a 'Conceptual Framework

question 13

Multiple Choice

What is the definition of a 'conceptual framework'?

• A) A conceptual framework is a set of prescriptions of what accounting should be.
• B) A conceptual framework is a structured positive theory of accounting.
• C) A conceptual framework is a coherent system of objectives and fundamentals that are expected to lead to consistent standards.
• D) A conceptual framework is a group of independent concepts on specific accounting issues, that are grouped together to provide a single reference.

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Definitions:

Quick Ratio

A financial metric that measures a company's ability to cover its current liabilities with its most liquid assets, excluding inventory.

Vacation Pay Payable

A liability account that records the amount of vacation pay owed to employees but not yet paid.

Current Liability

Financial obligations a company is required to pay within a year.

Product Warranty Expense

Costs associated with repairing or replacing defective products under warranty.