CFAS Chapter 2 (Valix): Key Takeaways and Examples
It describes the concept for general purpose financial reporting and an attempt to provide theoretical
foundation for accounting with the intention to guide preparers, setters, and users in presentation and
preparation of financial statements. - correct answer ✔✔Conceptual Framework
Conceptual Framework is a summary of terms and concepts for ______ users of FS. - correct answer
✔✔external users
Conceptual Framework was promulgated by? - correct answer ✔✔International Accounting Standards
Board (IASB)
Is the Conceptual Framework to be followed if a standard or interpretation is present? why? - correct
answer ✔✔No, standard and interpretation overrides Conceptual Framework
When should be Conceptual Framework followed? - correct answer ✔✔When there is no standard or
interpretation available
Is Conceptual Framework an International Financial Reporting Standard? - correct answer ✔✔No
What is the two classifications of the users of financial information? - correct answer ✔✔primary users
other users
It is whom the general purpose financial reports are directed into. - correct answer ✔✔primary users
Define other users of financial information. - correct answer ✔✔they are the ones who finds the fs
useful but it is not directed to them
It provides financial information about the reporting entity that is useful to investors, lenders, and
creditors in making decisions of providing resources to the entity. - correct answer ✔✔financial reporting
It describes the concept for general purpose financial reporting and an attempt to provide theoretical
foundation for accounting with the intention to guide preparers, setters, and users in presentation and
preparation of financial statements. - correct answer ✔✔Conceptual Framework
Conceptual Framework is a summary of terms and concepts for ______ users of FS. - correct answer
✔✔external users
Conceptual Framework was promulgated by? - correct answer ✔✔International Accounting Standards
Board (IASB)
Is the Conceptual Framework to be followed if a standard or interpretation is present? why? - correct
answer ✔✔No, standard and interpretation overrides Conceptual Framework
When should be Conceptual Framework followed? - correct answer ✔✔When there is no standard or
interpretation available
Is Conceptual Framework an International Financial Reporting Standard? - correct answer ✔✔No
What is the two classifications of the users of financial information? - correct answer ✔✔primary users
other users
It is whom the general purpose financial reports are directed into. - correct answer ✔✔primary users
Define other users of financial information. - correct answer ✔✔they are the ones who finds the fs
useful but it is not directed to them
It provides financial information about the reporting entity that is useful to investors, lenders, and
creditors in making decisions of providing resources to the entity. - correct answer ✔✔financial reporting
