Skip to content

ACCA Applied Knowledge · Financial Accounting · Stakeholders' needs

Which of the following is information that general purpose financial reports are intended to give users, according to the Conceptual Framework?

General purpose financial reports provide information on the entity's economic resources, the claims against it, and the changes in both resources and claims. This helps users assess prospects for future cash flows and management's stewardship. Internal budgets, competitor analysis and directors' personal affairs are outside this scope.

  1. AThe entity's economic resources, claims against it, and changes in themCorrect
  2. BThe personal wealth of the directors and their intended share sales
  3. CDetailed budgets for the next five years prepared for internal managers
  4. DThe entity's market share compared with each named competitor

Explanation

The Framework states that reports provide information about the entity's economic resources, claims against the entity and changes in those resources and claims. Internal budgets and competitor market share are management or other information, and directors' personal wealth is not an entity matter.

Did you get it right without looking?

One question tells you little. A timed set on Stakeholders' needs shows your real accuracy, how long you take and where you lose marks.

Practise Stakeholders' needsFree diagnostic mock

More Stakeholders' needs questions