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 company's financial statements.

Question

Quizplus · Accepted Answer

The Statements of Financial Accounting Concepts, part of the FASB's conceptual framework, are not the primary source of Generally Accepted Accounting Principles (GAAP) for accountants. Instead, they provide a foundation for setting accounting standards and guide the FASB in creating those standards. The primary sources of GAAP include the FASB Accounting Standards Codification and the Governmental Accounting Standards Board (GASB) statements for state and local governments.

Which of the Following Statements Is Not True with Regard