In its conceptual framework, the FASB concluded that financial reporting rules should concentrate on providing information that is helpful to
A)company management and owners.
B)tax authorities.
C)current and potential investors and creditors in making investment and credit decisions.
D)regulating agencies.

Question

Quizplus · Accepted Answer

The FASB's conceptual framework emphasizes that financial reporting should provide useful information to current and potential investors and creditors in making investment and credit decisions. While financial information may also be relevant to company management, tax authorities, and regulating agencies, the primary focus is on the needs of investors and creditors.

In Its Conceptual Framework, the FASB Concluded That Financial Reporting