The Conceptual Framework for Financial Reporting states that financial information is deemed to be useful when it influences the decisions of users of the information and when it?
Select ONE answer:
- Is produced in a timely fashion
- Is complete and accurate
- Establishes management accountability
- Is produced in a cost-beneficial way
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct == > In addition to helping users make decisions, the Conceptual Framework for Financial Reporting states that financial information, in general, is useful when it shows the results of management’s stewardship of the resources entrusted to it, so that managers are thereby accountable to shareholders.
- Not correct
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