An Accountant Has Encountered a Perplexing Financial Reporting Issue Related

question 39

Multiple Choice

An accountant has encountered a perplexing financial reporting issue related to the private college for which he is preparing financial statements.The issue is not specifically addressed by FASB Statements.To what standards would the accountant first look for guidance?

• A)GASB Statements.
• B)AICPA accounting and auditing guide, Not-for-Profit Organizations.
• C)AICPA accounting and auditing guide, Audits of Colleges and Universities and/or AICPA SOP 74-8, Financial Accounting and Financial Reporting by Colleges and Universities.
• D)College textbooks.

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Definitions:

Cognitive Equilibrium

A state of mental balance where a person's existing knowledge, beliefs, and thoughts are consistent with their experiences and information from the environment.

Piaget

A Swiss psychologist known for his pioneering work in child development, emphasizing stages of cognitive growth such as sensorimotor and operational phases.

Intellectual Advancement

The process of gaining new knowledge, skills, and understanding, leading to increased intellectual capacity and achievements.

Cross-Sectional Study

An observational study method that examines information from a given population or a representative sample at a distinct moment in time.