Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 13

For the following questions, circle the best response.

In SFAC No. 1 , which of the following ideas is not expressed?

a. Information largely reflects financial effects of past transactions and events.

b. Financial information must always be accurate because it is the only source of information available to decision makers.

c. The objectives of financial reporting stem primarily from the needs of external users who lack the authority to demand the information they want from management.

d. The objectives are directed toward the common interests of many user groups, not just investors and creditors

Step 1 of 5

Statement of Financial Accounting Concepts (SFAC):

The statement of financial accounting concepts is a document which is issued by the Financial Accounting Standards Board (FASB). This document provides the definitions and concepts related to accounting and it is used as a guideline for developing accounting policies and standards for future.