The development of a conceptual framework has solved the problem of inconsistency in the application of accounting in practice.

Question

Quizplus · Accepted Answer

While a conceptual framework helps improve financial reporting by providing a foundation for developing accounting standards, it does not completely solve the problem of inconsistency in the application of accounting in practice due to differences in interpretation, professional judgment, and the evolving nature of business transactions.

The Development of a Conceptual Framework Has Solved the Problem