Which of the following best describes why a conceptual framework is necessary?
A. to build all standards and rules upon a common foundation and increase financial statement users understanding and confidence
B. to make financial statement preparation an automated process requiring no human intervention
C. to completely eliminate the potential for companies to exercise professional judgement in preparation of financial information
D. to decrease the comparability of different companies financial statements
Answer:A
Which of the following best describes why a conceptual framework is necessary?
A. to build all standards and rules upon a common foundation and increase financial statement users understanding and confidence B. to make financial statement preparation an automated process requiring no human intervention C. to completely eliminate the potential for companies to exercise professional judgement in preparation of financial information D. to decrease the comparability of different companies financial statements