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) the scope and objectives of financial reporting and the qualitative characteristics that financial information should possess.

Question

Quizplus · Accepted Answer

The question mentions two important aspects: establishing a conceptual framework of accounting and obtaining general consensus. The three options listed (A, B, and C) all contribute to the establishment of such a framework, but none of them on their own can achieve general consensus. Therefore, the best option is D, which combines the scope and objectives of financial reporting with the qualitative characteristics that financial information should possess. This broader approach is more likely to garner greater agreement among stakeholders and establish a more robust conceptual framework.

A Central Goal in Establishing a Conceptual Framework of Accounting