The Accounting Principle That Requires Important Noncash Financing and Investing

question 167

Multiple Choice

The accounting principle that requires important noncash financing and investing activities be reported on the statement of cash flows or in a footnote is the:

• A) Historical cost principle.
• B) Materiality principle.
• C) Full disclosure principle.
• D) Going concern principle.
• E) Business entity principle.

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Definitions:

Social Cognitive Theory

A theory that posits that learning occurs in a social context with a dynamic and reciprocal interaction of the person, environment, and behavior.

Classical Conditioning

An educational method where a response initially triggered by a second stimulus comes to be triggered by the first stimulus alone, due to the repeated pairing of both stimuli.

Classical Conditioned

A learning process that pairs a neutral stimulus with a response-producing stimulus, leading to the neutral stimulus eliciting the response on its own.

Phobias

Irrational and excessive fears of specific objects, situations, or activities that result in a compelling desire to avoid the feared subject.