If the conceptual framework sets out the concepts that underlie the preparation and presentation of financial statements for external users, which of the following questions is the conceptual framework not attempting to answer?
A) Who are the users of general-purpose financial reports?
B) Which entities should prepare special-purpose financial reports?
C) How should the elements of the financial statements be measured and displayed?
D) What are assets, liabilities, income, expenses and equity?

Question

Quizplus · Accepted Answer

The conceptual framework is not attempting to answer which entities should prepare special-purpose financial reports. It is primarily concerned with setting out the concepts and principles that are used in the preparation and presentation of general-purpose financial statements for external users. Questions A, C, and D are all related to the conceptual framework and are important in determining how financial statements should be prepared and presented.

If the Conceptual Framework Sets Out the Concepts That Underlie