The FASB's Conceptual Framework Does Not Include Which of the Following

question 76

Multiple Choice

The FASB's conceptual framework does not include which of the following as financial reporting objectives?

• A)Provide information useful for making rational investment and credit decisions.
• B)Provide information to help current and potential investors and creditors assess the amount, timing, and uncertainty of past cash flows.
• C)Provide information about the economic resources of a firm and the claims on those resources.
• D)Provide information about a firm's operating performance during a period.
• E)Provide information about how an enterprise obtains and uses cash.

---

Definitions:

Rights Offering

A method by which companies raise additional capital by giving existing shareholders the right to subscribe to new shares at a discount.

Actual Value

The true or market value of an asset, not influenced by any external conditions, often used in financial and appraisal contexts.

Preemptive Rights

Rights that allow existing shareholders to purchase additional shares before new shares are offered to the public, to maintain their proportionate ownership in the company.