Firm's Choices and Estimates Within U

question 70

Multiple Choice

Firm's choices and estimates within U.S.GAAP should be determined by:

• A) how the industry operates.
• B) the firm's underlying economic circumstances.
• C) SEC interpretations regarding specific choices.
• D) the firm's auditor.

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Definitions:

Ratify

To formally approve or confirm an agreement or treaty, making it officially valid.

Principal

The original amount of money invested or loaned, not including profits or interest.

Agent's Unauthorized Contract

A contract or agreement made by an agent without the proper authority or permission from the principal, often raising questions of enforceability and liability.

Third Party

An entity that is involved in a transaction or situation but is not one of the two main entities directly involved, often providing an external perspective or service.