Which of the Following Is Not One of the Major

question 26

Multiple Choice

Which of the following is not one of the major potential benefits of a conceptual framework for accounting standards setters?

• A) Improve the communication process
• B) More consistent and logical accounting standards
• C) Savings in auditing costs
• D) Improved accountability

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Definitions:

Earnings Per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability.

Stock Repurchase

A transaction in which a company buys back its own shares from the market, often to increase the value of remaining shares by reducing the supply.

Excess Cash

Funds that exceed the normal operating needs of a company, potentially available for investment or distribution to shareholders.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from its total revenue.