Current financial reporting standards assume that users of accounting information:
A)have an expert's understanding of economic and financial events and conditions.
B)have a reasonably informed knowledge of business.
C)have widely differing levels of knowledge about business,and that financial reporting must meet these differing needs.
D)have only minimal knowledge of business.

Question

Quizplus · Accepted Answer

Current financial reporting standards assume that users of accounting information have a reasonably informed knowledge of business. This means that they have some understanding of basic financial concepts and the overall operations of a business. However, these standards do not assume that users are experts in the field, nor do they assume that users have widely differing levels of knowledge. Rather, they assume a baseline level of understanding that is necessary to interpret financial reports.

Current Financial Reporting Standards Assume That Users of Accounting Information