A central goal in establishing a conceptual framework of accounting will be to obtain general consensus on:
A)the scope and objectives of financial reporting.
B)the qualitative characteristics that financial information should possess.
C)what the elements of financial reporting are,including agreement on the characteristics and recognition criteria for assets,liabilities,income,expenses and equity.
D)All of the given answers.
E)the scope and objectives of financial reporting and the qualitative characteristics that financial information should possess.

Question

Quizplus · Accepted Answer

A central goal in establishing a conceptual framework of accounting is to obtain general consensus on several key aspects of financial reporting. These aspects include:1. The scope and objectives of financial reporting: This involves defining the purpose of financial reporting, identifying the primary users of financial statements, and determining what information is necessary to meet the needs of these users.
2. The qualitative characteristics that financial information should possess: This refers to the attributes that make financial information useful to users. These characteristics typically include relevance, reliability, comparability, and understandability.
3. What the elements of financial reporting are, including agreement on the characteristics and recognition criteria for assets, liabilities, income, expenses, and equity: This involves defining the fundamental building blocks of financial statements and establishing the rules for recognizing and measuring these elements.
Given these points, the correct answer to the question is:
4. All of the given answers.
This is because a comprehensive conceptual framework of accounting would encompass all of these aspects to ensure that financial reporting is consistent, comparable, and useful for decision-making by users of financial statements.

A Central Goal in Establishing a Conceptual Framework of Accounting