The conceptual framework has been created to make accounting information useful.

Instructions

Indicate whether the following statements about the conceptual framework are true or false. If false, provide a brief explanation supporting your position.

(a) Accounting standards that rely on a body of concepts will result in useful and consistent pronouncements.

(b) General-purpose financial reports are most useful to company insiders in making strategic business decisions.

(c) Accounting standards based on individual conceptual frameworks will generally result in consistent and comparable accounting reports.

(d) Capital providers are the only users who benefit from general-purpose financial reporting.

(e) Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company.