FASB Conceptual Framework

Lesson:

The Financial Accounting Standards Board (FASB) has created a conceptual framework which lays out the broad goals of its accounting regulations.

The system divides various focuses into two groups: quantitative and qualitative aspects.

Some auditors are looking over your accounting work, and have come to you with an urgent question.

The only relevant information you've discovered is as follows:

  • An accountant explained that one of the most important characteristics in accounting is relevance.

Which aspect of the FASB Conceptual Framework does relevance support?

Answer:

  • Relevance is a enhancing qualitative characteristic.
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