The primary reasons for developing a conceptual framework is to:
A) enable regulators to develop accounting standards that are consistent and logically formulated.
B) provide guidance to accountants in areas where no standard exists.
C) reduce the number of accounting standards needed.
D) provide an alternative view to the accounting standards.

Question

Quizplus · Accepted Answer

The primary purpose of developing a conceptual framework is to provide a consistent and logical basis for the development of accounting standards by regulators. It aims to provide a set of principles and concepts that guide accountants in making accounting judgments in areas where standards may not exist or may be unclear. While it may help reduce the number of accounting standards needed, this is not the primary reason for developing a conceptual framework, and it does not provide an alternative view to the accounting standards.

The Primary Reasons for Developing a Conceptual Framework Is To