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NEW QUESTION: 1
A. Option D
B. Option A
C. Option B
D. Option C
Answer: B
Explanation:
Explanation: References:
NEW QUESTION: 2
A multinational enterprise recently purchased a large company located in a different country. When introducing the concept of governance to the new acquisition, it is MOST important that executive management recognize:
A. the use of international standards.
B. the impact of cultural changes.
C. globally recognized good practices.
D. language differences.
Answer: B
NEW QUESTION: 3
According to the FASB conceptual framework, the objectives of financial reporting for business
enterprises are based on:
A. The need for conservatism.
B. The needs of the users of the information.
C. Reporting on management's stewardship.
D. Generally accepted accounting principles.
Answer: B
Explanation:
Choice "d" is correct. The FASB conceptual framework states that the objectives of financial reporting
stem from the informational needs of the external users of the information. SFAC 1 para.
Choice "a" is incorrect. Conservatism is an underlying concept for financial accounting but is not the basis
for the objectives. SFAC 2 para. 91-97 Choice "b" is incorrect. Information concerning management's
stewardship is only one aspect of the information financial statements are intended to provide. SFAC 1
para. 50 Choice "c" is incorrect. Generally accepted accounting principles (GAAP) are derived from and
based on the objectives of financial reporting, not the other way around.