Which of these is a fundamental purpose of accounting standards? Improving:
i.Accountant's ethics
ii.Social accountability
iii.Share price
iv.Resource allocation

Question

Quizplus · Accepted Answer

The fundamental purpose of accounting standards is to improve resource allocation by ensuring that financial information is accurate, reliable, and relevant for decision-making. While ethics and social accountability may be influenced by accounting standards, they are not the primary purpose. Share price is also not a primary purpose, although it may be indirectly affected by accurate and reliable financial information. Therefore, only option C - iv (resource allocation) is the best choice.

Which of These Is a Fundamental Purpose of Accounting Standards