alleryStart learning →Readers of financial statements are assumed to have what knowledge?
AAdvanced legal training
BReasonable working knowledge
CNo accounting knowledge
DExpert auditing training
Answer & Solution
Correct answer: B. Reasonable working knowledge
Understandability presumes readers with a reasonable grasp of business, economics and accounting who study the information diligently.
Keep practising Framework for preparation and presentation of financial statements
Browse all Framework for preparation and presentation of financial statements questions for CA Inter, or explore more Accounting topics.
Related questions
Before Ind AS, which accounting framework did Indian companies follow?Ind AS 107 deals with disclosures on which subject?Which standards for computing taxable income were notified in February 2015?Once a company follows Ind AS, can it revert to the old method?Mandatory Ind AS from April 2016 applied to net worth of at least?Ind AS are named and numbered in line with which standards?In which year was the Accounting Standards Board constituted?Cost 1,000; sale 1,150; replacement cost 1,100. Profit on replacement basis?