What is a purpose of having a conceptual framework?

A. To enable the profession to more quickly solve emerging practical problems and to provide a foundation from which to build more useful standards.

B. To make sure that economic activity can be identified with a particular legal entity.

C. To segregate activities among different companies.

D. To provide comparable information for different companies.

Question

Business

Deja Hopkins

21 August, 19:49

What is a purpose of having a conceptual framework?

A. To enable the profession to more quickly solve emerging practical problems and to provide a foundation from which to build more useful standards.

B. To make sure that economic activity can be identified with a particular legal entity.

C. To segregate activities among different companies.

D. To provide comparable information for different companies.

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Answers (1)

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Alicia Hoffman · Answer 1

A) To enable the profession to more quickly solve emerging practical problems and to provide a foundation from which to build more useful standards.

Explanation:

A conceptual framework refers to a system of ideas and objectives that generate a consistent set of rules and standards. All CPAs work following accounting standards, e. g. US GAAP or IFRS. Without a conceptual framework, it would have been impossible to develop standard norms that apply to every accounting professional and that are used and required by all the companies, the markets and government regulators.