BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Evaluating theories-logic & evidencePrescriptive (normative) Theories16. The conceptual framework identifies a limited range of primary users of financial statements. Which of the following best describe the users
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Capital providers and current investors
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Investors, creditors, customers, and general public
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Resources provider, lenders, and board of director
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Present and potential equity investors, lenders, and other creditors
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Explanation:
Detailed explanation-1: -4 Throughout the Conceptual Framework, the terms ‘primary users’ and ‘users’ refer to those existing and potential investors, lenders and other creditors who must rely on general purpose financial reports for much of the financial information they need.
Detailed explanation-2: -The four principal qualitative characteristics are understandability, relevance, reliability and comparability.
Detailed explanation-3: -Existing and potential investors, lenders, and other creditors are the primary users to whom general purpose financial reports are directed (OB5).
There is 1 question to complete.