According to the conceptual framework, the objectives of financial reporting for business enterprises are based on The need for conservatism The needs of the users of the information. Generally Accepted Accounting Principles. Reporting on management's stewardship. True/false

Question

Skylar Frey

Business

22 June, 14:12

According to the conceptual framework, the objectives of financial reporting for business enterprises are based on The need for conservatism The needs of the users of the information. Generally Accepted Accounting Principles. Reporting on management's stewardship. True/false

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Isabella Callahan · Answer 1

The needs of the users of the information

Explanation:

Financial statements are used by several stakeholders and companies are required to release reports on their financials. The objective of financial reporting is to provide useful information to these stakeholders e. g. investors, stockholders, creditors and the government. Therefore it is based on their needs of the information. Conceptual framework used in financial accounting provides consistency to accounting standards and practices. It also determines the functions and limits of financial statements and financial accounting.