Which of the following is true about understandability as a qualitative characteristic of financial statements?
A. The onus to prepare understandable statements and to be able to understand them lies with the preparer.
B. Where the underlying transactions or economic events are more complex, the user is expected to understand them without the assistance of an advisor.
C. The onus to prepare understandable statements and to be able to understand them lies with the preparer and the user.
D. Users with no knowledge of business and financial accounting matters are expected to understand the financial statements.
Answer:C
Which of the following is true about understandability as a qualitative characteristic of financial statements?
A. The onus to prepare understandable statements and to be able to understand them lies with the preparer. B. Where the underlying transactions or economic events are more complex, the user is expected to understand them without the assistance of an advisor. C. The onus to prepare understandable statements and to be able to understand them lies with the preparer and the user. D. Users with no knowledge of business and financial accounting matters are expected to understand the financial statements.