Which of the following is not a purpose of the conceptual framework of accounting?
A) To provide definitions of key terms and fundamental concepts
B) To provide specific guidelines for resolving situations not covered by existing accounting standards
C) To assist accountants and others in selecting among alternative accounting and reporting methods
D) To assist the FASB in the standard-setting process

Question

Quizplus · Accepted Answer

The conceptual framework provides general principles and concepts for preparing financial statements, but it does not provide specific guidelines for resolving situations not covered by existing accounting standards. The framework assists in standard-setting by providing a basis for developing and evaluating accounting standards, but it is not the primary purpose. The other two options, providing definitions and assisting in selecting accounting methods, are key purposes of the conceptual framework.

Which of the Following Is Not a Purpose of the Conceptual