Which Is a Purpose of the Conceptual Framework in Accounting

question 33

Multiple Choice

Which is a purpose of the conceptual framework in accounting?

• A)To support principles-based accounting standards, principles and practices.
• B)To provide rules from which decision-useful financial information can be developed.
• C)To promote global consistency, acceptance and adoption of IFRS around the globe.
• D)To develop different accounting practices between countries around the globe.

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Definitions:

Consolidated Financial Statements

Financial statements that integrate the accounting information of a parent company and its subsidiaries, presenting it as one single entity.

Amortization

The method of incrementally expensing the original cost of an intangible asset over the period it is expected to be used.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, indicating the company's profit.

Dividends

Dividends are payments made by a corporation to its shareholders, usually as a distribution of profits.