Current financial reporting standards assume that users of accounting information:
A)Have an expert's understanding of economic and financial events and conditions.
B)Have a reasonably informed knowledge of business.
C)Have widely differing levels of knowledge about business,and that financial reporting must meet these differing needs.
D)Have only minimal knowledge of business.

Question

Quizplus · Accepted Answer

Current financial reporting standards assume that users of accounting information have a reasonably informed knowledge of business. This means that users are able to understand the basic financial statements and ratios, and can use them to make informed decisions about a company. However, it is important to note that users may still have different levels of knowledge about specific industries or accounting concepts, and it is up to the preparers of financial statements to provide sufficient information to allow for accurate interpretation.

Current Financial Reporting Standards Assume That Users of Accounting Information