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AICPA CPA-Financial Exam - Topic 3 Question 59 Discussion

Actual exam question for AICPA's CPA-Financial exam
Question #: 59
Topic #: 3
[All CPA-Financial Questions]

According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on:

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Suggested Answer: D

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. 28

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.


by Viola at Oct 16, 2022, 06:39 AM

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Launa
4 months ago
I thought conservatism was a bigger factor in reporting!
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Bette
4 months ago
Management's stewardship is important too, though.
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Joaquin
4 months ago
Wait, are we sure it's not just about GAAP?
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Catrice
4 months ago
Totally agree, it's all about the users!
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Colette
4 months ago
The objectives are really about user needs.
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Evelynn
5 months ago
I definitely recall that the FASB framework emphasizes user needs, but I can't remember if that's the main focus or just part of it.
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Tashia
5 months ago
I feel like I might be mixing up the concepts, but I think generally accepted accounting principles play a role too.
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Carmen
5 months ago
I remember practicing a question similar to this, and I think it was about management's stewardship.
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Lizette
5 months ago
I think the objectives are mainly about the needs of the users of the information, but I'm not completely sure.
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Jaime
5 months ago
I'm a bit unsure about the specific features of these APIs, but I'll give it my best shot.
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Rozella
5 months ago
I remember learning about the components of the InnoDB system tablespace in class. I think it contains table data, primary indexes, the InnoDB data dictionary, and the doublewrite buffer. Let me double-check that.
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Jesusita
5 months ago
Okay, let me review the options again. I think Planned Purchase Order is the one that's not supported, so I'll go with D.
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