The Conceptual Framework of Accounting Should Have Many Positive Effects

question 47

Multiple Choice

The conceptual framework of accounting should have many positive effects as new accounting standards are developed. Which of the following is not one of those effects?

• A) Financial statements among companies and industries should be more consistent and comparable.
• B) Standard setting should be more consistent with an overall statement of the objectives and concepts of financial reporting.
• C) Users' understanding and confidence in financial statements should increase.
• D) Management should have greater latitude in choosing among accounting alternatives.
• E) Accountants should be better able to assess the validity of different accounting alternatives for similar and dissimilar transactions and events.

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Definitions:

Expanding

Increasing in size, volume, quantity, or scope; extending or spreading out from a center or in all directions.

Labeling

The act of identifying or characterizing someone or something with a descriptor or name, often related to social stigma or categories.

Williams Syndrome

A rare genetic condition characterized by mild to moderate intellectual disability or learning difficulties, unique personality characteristics, distinctive facial features, and heart and blood vessel (cardiovascular) problems.

Symptoms

Observable signs or manifestations of a disease, disorder, or condition that are often reported by the patient and can be used for diagnosis.