In June 2009,in Relation to the IASB/FASB Joint Conceptual Framework

question 32

Multiple Choice

In June 2009,in relation to the IASB/FASB joint conceptual framework project,one exposure draft relating to the objectives and qualitative characteristics has been issued.Which of these statements concerning the reception of the exposure draft is true?

• A)Most respondents agreed with designating present and potential capital providers as the primary user group for general purpose financial reporting
• B)Most respondents agreed that not designating stewardship as a separate objective was unimportant
• C)Most respondents agreed with the list of qualitative characteristics included in the exposure draft.
• D)Most respondents agreed that financial reports should be prepared from the proprietorship perspective

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Definitions:

Goods Available

The total quantity of goods on hand at any time, including both inventory that is ready for sale and materials that will be used to produce goods.

Cost Of Goods

The total expense associated with producing goods, including raw materials and labor costs.

Beginning Inventory

The value of all inventory held by a business at the start of an accounting period.

Periodic Inventory System

An inventory accounting system where the inventory is physically counted at specific intervals to determine the cost of goods sold and ending inventory value.