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

question 37

Multiple Choice

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

• A)Provide information useful for making irrational 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's customers and the claims on those resources.
• D)Provide information about a firm's expected operating performance during the next period.
• E)all of the above

---

Definitions:

Par Value

The nominal value of a bond or the stated value of stock as documented in the company's charter, frequently utilized in official paperwork.

Ask Price

The lowest price a seller is willing to accept for an asset in the financial markets; it contrasts with the bid price, which is the highest price a buyer is willing to pay.

Coupon Bond

A type of bond that provides periodic interest payments to its holder, based on a fixed interest rate (coupon rate) until its maturity, at which point the principal amount is repaid.

Accrued Interest

The interest that has accumulated on a bond since the last interest payment was made, which the buyer of the bond must pay to the seller if the bond is bought between interest payment dates.