Which of These Is Not One of the Benefits of a Conceptual

question 21

Multiple Choice

Which of these is not one of the benefits of a conceptual framework?

• A)Reporting requirements will be more consistent and logical
• B)It may allow firms to reduce their reported profit
• C)The need for specific accounting standards should be reduced
• D)Standard setting boards will be more accountable for their actions

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Definitions:

Loan

A sum of money that is borrowed, typically from a financial institution, and is expected to be paid back with interest.

Months

Units of time, each approximately 30 days long, used to measure durations and periods in a year.

Investment

Channeling funds into ventures with the expectancy of generating income or profit.

Interest

Interest is the cost of using someone else's money or the income earned from lending money, calculated as a percentage of the principal amount.