Worldatwork Exam T7 Topic 1 Question 61 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 61
Topic #: 1

[All T7 Questions]

What is one of the purposes of International Accounting Standards Board (IASB)'s conceptual framework, which establishes the concepts that underlie financial reporting?

AProvides information about economic entities that is useful in making economic decisions

BProvides guidance where conflicting interpretations have developed

CProvides benchmark for judgments

DInforms International Accounting Standards Board (IASB) of implications of proposed standards

Show Suggested Answer

Suggested Answer: A

by Noah at Nov 15, 2022, 08:06 PM

Limited Time Offer

25%

Off

Get Premium T7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Enola

1 months ago

I'll tell you the purpose - to give accountants something to argue about at their boring cocktail parties.

upvoted 0 times

...

Chanel

1 months ago

The conceptual framework? Is that like a blueprint for accounting Jenga?

upvoted 0 times

Carol

6 days ago

C) Provides benchmark for judgments

upvoted 0 times

...

Crissy

10 days ago

B) Provides guidance where conflicting interpretations have developed

upvoted 0 times

...

Blair

11 days ago

A) Provides information about economic entities that is useful in making economic decisions

upvoted 0 times

...

Henriette

2 months ago

Conflicting interpretations? That's what lawyers are for. I'm sticking with A, the one true answer.

upvoted 0 times

Thad

1 months ago

True, C is also crucial as it provides a benchmark for making judgments in financial reporting.

upvoted 0 times

...

Brett

1 months ago

But B is also important to provide guidance when there are conflicting interpretations.

upvoted 0 times

...

Tenesha

1 months ago

I agree, A is definitely the most important purpose of the IASB's conceptual framework.

upvoted 0 times

...

Ceola

2 months ago

Benchmark for judgments? That's a nice-to-have, but not the primary purpose. I'm going with A.

upvoted 0 times

...

Deandrea

2 months ago

I'm torn between A and D, but I think D makes the most sense. The framework should inform the IASB's decisions on proposed standards.

upvoted 0 times

Martha

11 days ago

Overall, it seems like all the options play a role in the purpose of the IASB's conceptual framework.

upvoted 0 times

...

Carissa

19 days ago

True, having a benchmark for judgments like C can also be helpful in ensuring consistency.

upvoted 0 times

...

Viva

27 days ago

I agree, but D is crucial too as it informs the IASB about the implications of proposed standards.

upvoted 0 times

...

Tamekia

1 months ago

I think A is also important because it provides information for economic decisions.

upvoted 0 times

...

Nichelle

2 months ago

The conceptual framework's purpose is clearly to provide information useful for economic decision-making. Option A is the way to go here.

upvoted 0 times

...

Martina

2 months ago

I believe it also guides in resolving conflicting interpretations.

upvoted 0 times

...

Annelle

2 months ago

I agree with Rosio. It helps in making informed judgments.

upvoted 0 times

...

Rosio

2 months ago

I think the purpose is to provide information for making economic decisions.

upvoted 0 times

...