Which is not a question that financial accounting theory can answer?
A)Why do companies provide financial information to external parties?
B)Why do all companies use the same accounting policies?
C)Why is certain disclosure mandatory in financial reporting?
D)What is the role of financial accounting and reporting?

Question

Quizplus · Accepted Answer

Financial accounting theory can explain why companies provide financial information and what the role of financial accounting and reporting is. It can also explain why certain disclosures are mandatory. However, it cannot explain why all companies use the same accounting policies as this involves a decision-making process by individual companies.

Which Is Not a Question That Financial Accounting Theory Can