Which of the following statements is not true with regard to the benefits derived from the FASB's conceptual framework of accounting?
A)It serves as a guide in establishing standards for the FASB.
B)The Statements of Financial Accounting Concepts is the primary source of GAAP for accountants.
C)It establishes the objectives of financial reporting.
D)It enhances comparability between different companies' financial statements.

Question

Quizplus · Accepted Answer

While the Statements of Financial Accounting Concepts is an important resource for the FASB in establishing standards, it is not the primary source of GAAP for accountants. GAAP is primarily derived from authoritative pronouncements issued by the FASB and other standard-setting bodies.

Which of the Following Statements Is Not True with Regard