Both the IASB and the FASB Frameworks Consider the Main

question 36

Multiple Choice

Both the IASB and the FASB frameworks consider the main objective of financial reporting is to communicate financial information to users.The information is to be selected on the basis of its usefulness in the economic decision-making process.This objective is seen to be achieved by reporting information that is:
I Useful in making economic decisions
II Useful in assessing cash flow prospects
III About enterprise resources,claims to those resources and changes in them

• A)i,ii
• B)i,iii
• C)ii,iii
• D)i,ii,iii

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Definitions:

Dividends in Arrears

Unpaid dividends on cumulative preferred stock which must be paid out before any dividends can be distributed to common stockholders.

Dividends Payable

A liability on a company's balance sheet representing the amount owed to shareholders in the form of dividends that have been declared but not yet paid.

Cumulative

Referring to the aggregate or total amount accumulated over a period of time, often used in the context of dividends or records.

Preferred Stockholders

Investors who own preferred shares in a company, having priority over common stockholders in receiving dividends and assets upon liquidation.